JD Sports Fashion 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.
The fashion and sportswear chain, which operates 4,811 stores worldwide, said uncertainty about the geopolitical situation could weigh on its profits in the year ahead. JD noted it had no direct exposure to the Middle East and only a handful of franchised stores in the region, with no material impact so far.
However, the company stated: "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."
As a result, JD provided a wider range of profit guidance for the next financial year, forecasting pre-tax profit between £750 million and £850 million. This would mark a decline from the £852 million pre-tax profit achieved in the year to the end of January 2026, which was down 6.4% year-on-year.
Total organic sales, excluding acquisitions, rose 2.1% to £12.66 billion. However, in the UK, a "tough consumer backdrop" led to organic sales falling 2.5% and like-for-like sales dropping 3.9%. JD closed 24 stores on a net basis in the UK over the past year, focusing on a "fewer, bigger, better" strategy.
Since the financial year end, JD said cold and wet weather dampened sales, with April trading "volatile" — a strong Easter followed by fewer store visitors.
Chief executive Regis Schultz commented: "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."
