JD Sports Fashion has warned that escalating tensions in the Middle East could lead to higher prices and rising operational costs after shutting 24 stores across the UK over the past year.
The British sportswear giant, which operates 4,811 stores worldwide, said the closures are part of its strategy to focus on “fewer, bigger, better” locations as shopping habits continue to evolve.
Although JD said it has no significant direct exposure to the Middle East and only a small number of franchised stores in the region, the retailer warned that the wider impact of the conflict could eventually affect pricing, logistics and consumer demand.
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.”
JD also revealed that ongoing global uncertainty has prompted the company to widen its profit guidance for the next financial year. The retailer now expects pre-tax profits to come in between £750 million and £850 million.
That would mark a decline from the £852 million pre-tax profit recorded for the year ending January 2026, which was already down 6.4 per cent compared with the previous year.
Despite the challenges, JD reported total organic sales growth of 2.1 per cent year-on-year, reaching £12.66 billion globally. However, trading conditions in the UK remained difficult, with the company blaming a “tough consumer backdrop” for weaker domestic performance.
Organic sales in the UK fell by 2.5 per cent, while like-for-like sales dropped by 3.9 per cent as shoppers continued to cut back on spending.
The retailer also said recent weather conditions had negatively affected trading, with cold and wet conditions reducing customer demand. JD described April trading as “volatile”, with a strong Easter period followed by fewer visitors to stores.
Regis Schultz, JD’s chief executive, said: “We delivered a resilient performance, achieving organic sales growth of 2.1% despite tough market conditions.”
He 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.”
Schultz also expressed confidence in the retailer’s long-term prospects despite expectations of slower market growth next year.
“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,” he said.