European Sporting Goods Sector Unlikely to See Significant Improvement in Near Term

Dow Jones
08/21

1154 GMT - European sporting goods market conditions are unlikely to improve materially over the next two quarters, J.P. Morgan analysts write in a note. The second quarter has been tough, with limited guidance upgrades and a few downgrades across the industry, they note. "Growth is slowing as brands prioritize full-price direct-to-consumer sales in a highly promotional market," they say. Additionally, talks with investors clearly suggest concerns about a structural slowdown in sector profit growth. However, it is too early to assume that there is a structural slowdown in footwear demand, they add. JD Sports shares are up 6%.

 

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