JD Sports warned of 'muted growth' as the war in the Middle East threatens to hit consumer spending.

The 'King of Trainers' said that like for like sales fell 2.3 per cent in the first quarter to 25 April - making it the latest retailer to set out a grim picture for the UK high street.

And it said it continues 'to anticipate muted market growth in the near term' and it expects annual profits could fall even further this year.

It said it expected annual profits of between £750million to £850million for the financial year that will end next January.

It said it was giving a wider range of guidance than planned due to the war in the Middle East, 'reflecting the uncertainty'.

'Although JD has no direct exposure in the Middle East, we continue to closely monitor the evolving situation and its potential impact on the consumer and our business if the crisis is prolonged,' it said.

Businesses ranging from Tesco to LVMH have warned of the impact the war will have on consumer spending. The conflict is set to increase household grocery and energy bills.

JD Sports said it made £852million in the year to 31 January - 6.4 per cent lower than the previous year. It is a decline for the business which a few years ago had the elusive £1billion profit milestone in its sights, alongside B&Q owner Kingfisher and fashion chain Next.

Sales in the UK also fell 3.9 per cent over the year to £3.1billion. The group cited a 'tough consumer backdrop', especially online. It said that a sales drop was 'largely driven by softness in footwear'.

JD Sports has also been hit by struggles at trainer giant Nike, which typically makes up around 45 per cent of its sales. The footwear retailer is on its own turnaround journey after shoppers flocked towards challenger brands including Hoka and On in recent years. 

Chief executive Regis Schultz is set to face questions after the retailer's chairman left in a dispute over his leadership.

Schultz is likely to be asked if he will stay in his role. Andy Higginson quit as chairman last month after trying to get Schultz ousted, but failing to win unanimous backing for this from the group's board.

Schultz had been backed by majority investor Pentland, the sportswear business owned by the billionaire Rubin family.

Investment bank Peel Hunt said on Thursday that ‘good strategic progress was made’ despite the tough trading conditions, including an ‘evolving and diversifying’ product range.

Although market leader Nike ‘is under an innovation cloud,’ analysts pointed to reasons to be optimistic, including popular smaller brands including UK sportswear maker AYBL and JD’s own-brand products. ‘It is still slightly a “pushing water uphill” process when the overall situation is a lack of product heat but we believe JD is doing its best with good long-term tactics,’ the Peel Hunt note added.