There is no need for hyperbole or profit warnings to unnerve investors these days, just mention the “challenging global macroeconomic situation”. JD Sports’ new management said pre-tax profits over the first half of the year were at the top of its expectations. The market’s response? Wipe 8 per cent off the FTSE 100 constituent’s shares, far worse than the decline in the index yesterday.
Sharply rising inflation and the ensuing increase in operating costs and pressures on consumer spending mean investors are right to be wary of retailers. But the latest sell-off takes the total share price decline so far this year to just under ten times forward earnings. Bar the March 2020 market crash, that leaves the shares at around the cheapest valuation in
