JD Sports has confirmed the closure of 24 stores across the United Kingdom over the past year, as the major high street retailer warns that geopolitical tensions could drive up costs and affect consumer demand. The sports fashion giant, which operates 4,811 stores worldwide, reported a decline in annual earnings and cautioned that conflict in the Middle East, particularly in Iran, could lead to higher prices and reduced spending by shoppers.
Store Closures and Strategy Shift
The retailer stated that the closures are part of its strategy to operate "fewer, bigger, better" shops. While the conflict in Iran has not had a direct impact on the business so far, with only a small number of franchised stores in the region, JD Sports warned that heightened uncertainty could eventually contribute to direct cost pressures. These include increased energy and fuel costs across its store and logistics networks, as well as potential indirect effects on pricing and consumer demand if input cost inflation emerges.
Financial Performance and Outlook
JD Sports announced it would offer a broader range of profit guidance for the forthcoming financial year due to the uncertainty. It now projects a pre-tax profit between £750 million and £850 million, a drop from the £852 million recorded in the year ending January 2026, which itself was down 6.4% on the previous year. Total organic sales for the group, excluding acquisitions, rose by 2.1% year on year to £12.66 billion.
In the UK, the company attributed the fall in organic sales to a "tough consumer backdrop." Since the close of the financial year, cold and wet weather has hampered sales, with trading in April described as "volatile." A strong Easter performance was followed by reduced footfall.
CEO Comments
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 gives 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, we remain confident in JD Group's medium-term trajectory, underpinned by our strong brand partnerships and agile, multi-brand model."
