Berenberg Cuts JD Sports Estimates, Price Target After Fiscal Q2 Update; Buy Reiterated

06:42 AM EDT, 08/21/2026 (MT Newswires) -- Berenberg lowered its estimates and price target for JD Sports Fashion (JD.L) following the sneaker and sport fashion retailer's "slightly disappointing" fiscal second-quarter trading update. For the 13 weeks ended Aug. 1, the company's like-for-like sales fell 3.1%, surpassing both Berenberg's estimate of a 2.7% decline and the consensus forecast of a 1.7% drop, with analysts highlighting North America as "particularly weak." For fiscal 2027, JD Sports lowered its profit before tax and adjusting items guidance to the range of 700 million pounds sterling to 800 million pounds, compared with its earlier forecast of 750 million pounds to 850 million pounds. "Market headwinds remain. Gen-Z consumers that account for the majority of group sales are under financial pressure and they are fewer in number than the Millennial generation - as outlined in our luxury goods team's Gen Z: enthusiastic but in short supply report earlier this year; given low birth rates, this seems unlikely to be addressed in the long term. There is a lack of fresh new product drops from the two largest brands that account for more than 50% of the group's sales," the note said. As such, Berenberg reduced its profit estimates by 7% to 8% across fiscal 2027 to 2029. The price target was also reduced to 1.50 pounds from 1.55 pounds. The stock's buy rating, meanwhile, was maintained. "We remain constructive on JD's recovery prospects should consumer and product cycles turn back in the company's favour. We also note the continuing low valuation of less than 8x P/E," Berenberg wrote.