Shares at JD Sports tumbled after the retail group issued a warning that annual profits will not reach expectations as consumers cut spending in the 22 weeks to 30 December.

The Guardian reported that more than £1.7bn was "wiped off" the value of JD Sports following the warning, which blamed mild weather and heavy discounting for affecting its sales in the run up to the festive season.

The group, which owns firms including Go Outdoors, Blacks, Millets and Size? saw its shares dive by 22%, making it the biggest faller in the FTSE 100.

As a result of these sales, JD Sports has dropped its annual profit guidance by 10% to £935m.

In the 22 weeks to the end of December, the group recorded constant currency organic revenue growth of 6%, with like-for-like revenue growth of 1.8%.

Chief executive officer at JD Sports Fashion, Régis Schultz, said: "We have made good progress against our five-year strategic plan, delivering global organic revenue growth of 6% in the period, against very tough comparisons with last year, and opening over 200 new JD stores in the year.

"Our key markets have seen increased promotional activity during the peak trading season, driven by a more cautious consumer, but we continue to grow market share. We are confident in our strategy and we continue to invest in our supply chain, systems and stores, supported by our strong cash generation and healthy balance sheet."

The guidance comes after shares at brands including Frasers Group, Marks and Spencer and N Brown Group also took a hit following poor sales before Christmas.

Head of investment at interactive investor, Victoria Scholar, added: "Pressures from the cost of living crisis have dampened consumers’ appetite to spend on retail. As a result JD Sports has been forced to offer more promotions and discounts which are eating away at its margins. The sports retailer is also grappling with increased cost pressures amid the elevated inflationary backdrop and unseasonably mild weather conditions which have hurt demand for warmer winter clothing.

"While December is typically a strong month for consumer spending over the festive period, January and February look set to be even more challenging as shoppers rein in spending, focusing on paying off debts and increasing savings instead after the Christmas blowout.

"Until now it has felt like JD Sports has been successfully navigating the pressures from the cost of living crisis. But today is somewhat of a reality check, highlighting that sports goods demand is waning and it is hurting the big players in the space."

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