JD Sports sees profits drop as it closes 24 branches

JD revealed that its pre-tax profit declined by 6.4% year-on-year

JD Sports Fashion has reported a decline in sales in the UK amid weaker consumer demand and store closures, while profits dropped amid uncertainty over the impact of the Iran war. It comes after the chain closed 24 branches in the UK.

The fashion retail giant, which has about 4,811 stores around the world, blamed a “tough consumer backdrop” in the UK for organic sales falling by 2.5% for the year to the end of January, compared with the prior year. It closed 24 stores, on a net basis, in the country over the past year with a focus on “fewer, bigger, better” shops.

Total organic sales for the global business, which excludes the impact of acquisitions, increased by 2.1% year-on-year to £12.66 billion. JD revealed that its pre-tax profit declined by 6.4% year-on-year, at constant currencies, to £852 million.

JD Sports Fashion has reported a decline in sales in the UK amid weaker consumer demand and store closures, while profits dropped amid uncertainty over the impact of the Iran war. It comes after the chain closed 24 branches in the UK.

The fashion retail giant, which has about 4,811 stores around the world, blamed a “tough consumer backdrop” in the UK for organic sales falling by 2.5% for the year to the end of January, compared with the prior year. It closed 24 stores, on a net basis, in the country over the past year with a focus on “fewer, bigger, better” shops.

Total organic sales for the global business, which excludes the impact of acquisitions, increased by 2.1% year-on-year to £12.66 billion. JD revealed that its pre-tax profit declined by 6.4% year-on-year, at constant currencies, to £852 million.

The company has cautioned that the war in the Middle East could push up prices and weaken consumer demand if it leads to higher costs, as the retail giant reported a drop in its annual earnings. JD said it had no “direct exposure” to the Middle East, and had only a handful of franchised stores in the region, and there had been no real impact on the business so far.

But the company said: “Over time, the potential future impacts of heightened uncertainty may contribute to direct cost pressures, including energy and fuel costs across our store and logistics networks, respectively, as well as potential indirect impacts on pricing and consumer demand should input cost inflation emerge.”

JD said that, as a result of the uncertainty, it was providing a wider range of profit guidance for the next financial year than it was previously planning. It was now forecasting a pre-tax profit of between £750 million and £850 million.

This would mark a decline from the £852 million pre-tax profit that the company made for the year to the end of January 2026, which was down 6.4% compared with the previous year. Total organic sales for the group, which excludes the impact of acquisitions, increased by 2.1% year on year to £12.66 billion.

But in the UK, it blamed a “tough consumer backdrop” for organic sales declining by 2.5%, and sales on a like-for-like basis dropping by 3.9%. JD closed 24 stores, on a net basis, in the country over the past year as it pressed ahead with a focus on “fewer, bigger, better” shops.

Since the end of the financial year, JD said cold and wet weather had dampened sales and that trading in April was “volatile” with a strong Easter performance followed by fewer visitors to shops. Regis Schultz, JD’s chief executive, said: “We delivered a resilient performance, achieving organic sales growth of 2.1% despite tough market conditions.

“Our deep understanding of our customers and lifestyle trends give us a clear view of how they want to shop and spend, allowing us to consistently deliver the right products, in the right places and at the right prices. Whilst we continue to expect muted market growth in FY27 (2027 financial year), we remain confident in JD Group’s medium‑term trajectory, underpinned by our strong brand partnerships and agile, multi‑brand model.”

JD Sports began in 1981 when founders John Wardle and David Makin opened their first shop in Bury, Greater Manchester. The name “JD” is an acronym of their first initials.

The business focused on the emerging trend of sports fashion, bridging the gap between athletic performance and street style. The niche proved successful enough that by 1983, they were expanding into Manchester’s Arndale Centre, and by the end of the decade, they had established a high-profile presence on London’s Oxford Street.

In 1996, JD Sports Fashion plc listed on the London Stock Exchange with a portfolio of 56 stores. This influx of capital fueled a decade of aggressive domestic consolidation. Notable moves included the 2002 acquisition of nearly 200 stores from the First Sport chain and the 2005 purchase of 70 stores from their rival, Allsports.

During this same year, the founders stepped back from the business, selling a majority stake to the Pentland Group, the global brand management company behind names like Speedo and Berghaus. The 2010s saw the brand transform from a British high-street staple into a global powerhouse.

JD made its first foray into the European market in 2009 by acquiring the French retailer Chausport, followed by a move into Spain via the Sprinter group in 2011. They also diversified their portfolio by moving into the outdoor leisure market, acquiring well-known brands like Blacks and Millets in 2012 and Go Outdoors in 2016.

By the late 2010s, the company turned its attention toward North America and the Asia-Pacific region. They entered Malaysia in 2016 and made a massive splash in the United States in 2018 by acquiring Finish Line, which gave them an immediate foothold in 44 American states.

Through the early 2020s, the group continued to expand through high-value acquisitions like Shoe Palace, DTLR, and most recently Hibbett in 2024, cementing their status as a “King of Trainers” with thousands of stores across 30 different territories.