JD Sports Fashion PLC (LSE:JD.) and other leading European sportswear retailers fell sharply on Friday after Nike gave a downbeat outlook for 2024.
Shares in the US retail giant fell 11.5% in after hours trading after it warned of a "softer" second-half revenue outlook.
Alongside its second quarter results, Nike said it expected full-year revenue to rise about 1% after declines in the current quarter and a modest increase in the subsequent one.
Chief Financial Officer Matt Friend said on the company’s conference call that the new outlook reflects a challenging environment “particularly in Greater China and EMEA.”
He added there are “indications of more cautious consumer behaviour around the world.”
Nike is also planning to cut costs by $2 billion.
Shares in JD Sports slumped 5.4% while adidas and Puma fell 6.1% and 5.9% respectively.
Fraesers Group, which owns Sports Direct, is down 0.9%.