JD Sports Fashion has issued a warning that the ongoing conflict in the Middle East could drive up prices and dampen consumer demand, potentially hindering the company's future profitability. The sportswear giant reported a 6.4% decline in annual pre-tax profit, which fell to £852 million for the year ending January 2026.
Profit Forecast and Geopolitical Uncertainty
For the upcoming financial year, JD Sports forecasts a pre-tax profit ranging between £750 million and £850 million. The company attributes the wide guidance range to geopolitical uncertainty, particularly the war with Iran, which it says could impact both costs and consumer behaviour.
Sales Performance
While total organic sales rose by 2.1% globally, the UK market experienced a 2.5% decline in organic sales. JD Sports cited a challenging consumer backdrop in the UK, which has been exacerbated by recent cold and wet weather that has further dampened sales since the end of the financial year.
The retailer also closed a net 24 stores in the UK over the past year, reflecting the tough trading conditions. JD Sports noted that the recent poor weather has negatively affected footfall and sales, adding to the pressures from the broader economic environment.
Despite these challenges, the company remains optimistic about its global brand strength and long-term growth prospects, though it acknowledges that the near-term outlook is clouded by the conflict in the Middle East and its potential to fuel inflation and reduce consumer spending.
