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Retailer JD Sports Fashion has cautioned that annual profits will be at the lower end of forecasts as it warned over the impact of rising unemployment and unusually warm autumn weather.

The group saw sales continue to decline across key markets, including the UK, where like-for-like sales fell 3.3% in its third quarter to November 1, although this was an improvement on the 6.1% drop in the previous three months.

It cautioned over “pressures on our core customer demographic, including rising unemployment levels, as well as near-term volatility around consumer sentiment”.

JD Sports said that, noting the “importance” of the peak festive trading period, underlying pre-tax profits were expected “within the lower end of current market expectations”, which were currently for between £853 million and £888 million.

This is set to mark a steep fall on the £923 million reported a year earlier.

Regis Schultz, chief executive of JD Sports, said: “As we enter an important trading period, we are mindful of recent weak macro and consumer indicators in our key markets.

“These lead us to take a pragmatic approach for our full-year 2025/26 profit outturn.”

He said: “Our multi-brand and cross-category approach, and agility in responding to changing customer trends, are helping us to offset known consumer and industry headwinds.”

In the UK, the group said sales of clothing and outdoor ranges were hit in September by “unseasonably warmer weather”, while it saw ongoing difficult trading for shoes.

But it said sales were boosted by the “continued success” of its new flagship store at the Trafford Centre in Manchester.

Overall group sales were 1.7% lower in its third quarter, with a 1.7% fall in North America and European sales down 1.1%.

Asia Pacific was the only region to see rising sales – up 3.9%.

“Throughout this year, we have operated in our global markets amid macroeconomic volatility, strained consumer finances, and evolving brand product cycles,” JD Sports said.