** J.P. Morgan expects the European sporting goods sector to face another challenging quarter as promotional pressures continue to act as a headwind, partly offset by the ongoing World Cup

** Based on its channel checks and read-across from recent consumer earnings, JPM sees Europe to be more affected than the US by the Middle East conflict due to lowing consumer spending and traffic

** While it continues to see execution risk in the turnaround at Puma PUMG.DE and JD Sports JD.L, the brokerage notes that expectations have been reset to lower levels, offering some downside protection

** JPM resumes JD Sports with "neutral," saying the promotional environment and the sizeable exposure to Nike NKE.N will continue to weigh on its profit outlook

** The broker also initiates Puma with "neutral," saying downside risks to the stock are largely priced in in the near term

** JPM expects Adidas ADSGn.DE and On 49G.BN to stand out against the weaker sector backdrop, maintaining solid momentum as consistent delivery of earnings growth over the coming quarters supporting an upward re-rating of both companies

** It starts both sportswear makers with an "overweight" rating