JJB Sports revealed today that it could miss profit targets by nearly 25 per cent this year after a dismal summer and a sharp fall in demand for replica England kit.

In early trading, shares in the sports retailer fell by 12.33 per cent to 176p, a 12-month low, wiping nearly £60 million off its market value.

The warning comes only one month after Chris Ronnie, the former right-hand man to Mike Ashley, the founder of the rival chain Sports Direct, took over as chief executive.

In a trading update today, JJB said that like-for-like sales in the six months to the end of July had dropped 4.4 per cent below the same period last year.

Net profit in the half-year was about £8 million, £3.5 million below expectations, and JJB said that it was “prudent to assume” that profits over the full year were likely to be £35 million — £12 million below City expectations.

JJB said that the most significant effect on the business had been tough comparatives with the World Cup a year ago, when sales of replica England shirts reached all-time highs.

However, the group added that it was also reviewing the strategy of allowing Nike and adidas to operate stores within JJB stores.

JJB insisted that it still wanted to work closely with the two brands but hoped to “optimise their presentation” while giving more sales space over to its own labels.

Analysts said that the increased cost of introducing the adidas and Nike concessions looked also to have hit JJB’s profits.

In a profit warning last week, Umbro, the national team’s official kit maker, said it feared that up to one million England shirts could be left on the shelves this year as fans turn their back on the squad.

Yesterday Sports Direct refused to divulge any information on its sales performance over the summer but surprised some in the City by sticking to profit targets.

However, the group acknowledged that trading conditions remained “difficult”.

Mr Ronnie joined JJB in June, when he fronted Icelandic-based Exista's purchase of a 29 per cent stake in the company held by Dave Whelan, the founder of JJB Sports, for £190 million.

As part of the deal Mr Ronnie became deputy chief executive. He was promoted last month when Tom Knight, the veteran retailer, resigned as chief executive.

David Stoddart, a Landsbanki retail analyst, said: “The disappointing numbers and the apparently increased likelihood that the new strategy will leave JJB less differentiated from Sports Direct rather than more, justifies the ongoing 'reduce' recommendation.”

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