JD Sports Fashion has closed 24 stores across the UK over the past year as the retailer pushes ahead with plans to operate “fewer, bigger, better” locations.
The sportswear giant said the closures formed part of a wider consolidation strategy focused on larger flagship-style stores rather than a reaction to financial difficulties.
The company, which operates around 4,811 stores worldwide, reported annual pre-tax profits of £852million for the financial year ending January 2026.
That marked a decline of 6.4 per cent compared with the previous year.
Total organic revenue rose to £12.66billion, representing growth of 2.1 per cent when acquisitions were excluded from the figures.
JD Sports also warned that the ongoing conflict involving Iran could eventually place further pressure on costs across its operations.
Although the retailer has only a limited presence in the Middle East through a small number of franchised stores, it said wider economic uncertainty could still affect the business.
The company warned higher energy and fuel costs across stores and logistics networks could eventually feed through into customer prices and consumer demand.
JD Sports closes 24 UK branches as profits drop and sales weaken
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JD 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.”
The retailer said the uncertain outlook had prompted management to widen its earnings guidance for the coming financial year.
JD Sports now expects pre-tax profits to come in between £750million and £850million, potentially marking another year of lower earnings.
Trading conditions in the UK remained particularly difficult during the period.
JD warns that prolonged uncertainty could push up its energy, fuel and input costs
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Organic sales in Britain fell by 2.5 per cent year-on-year, while like-for-like sales dropped by 3.9 per cent.
The company blamed the weaker performance on what it described as a “tough consumer backdrop” affecting spending habits.
Recent trading conditions have also remained challenging because of poor weather affecting footfall in stores.
JD Sports said cold and wet conditions following the end of the financial year weighed on customer visits.
The retailer said April trading proved volatile, with stronger Easter sales followed by a slowdown in footfall later in the month.
Chief executive Regis Schultz said the company had still delivered a resilient performance despite pressure on consumer spending.
Mr Schultz said: “We delivered a resilient performance, achieving organic sales growth of 2.1 per cent despite tough market conditions.”
He said the company’s understanding of customer behaviour and shopping trends continued to support the business.
Mr Schultz added: “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.”
Looking ahead, he said the retailer expected market conditions to remain subdued during the 2027 financial year.
However, the group remained confident in its medium-term growth prospects because of its relationships with major brands and its flexible multi-brand retail strategy.