JD Sports Fashion has warned that the Middle East conflict could push up prices and weaken consumer demand, particularly if it leads to higher costs.
This caution comes as the retail giant simultaneously reported a drop in its annual earnings.
The global fashion and sportswear chain, operating 4,811 stores, stated this geopolitical uncertainty could weigh on its profits in the year ahead.
JD clarified it has “no direct exposure” to the Middle East, with only a handful of franchised stores in the region, and no real impact on the business so far.
However, the company warned: “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 of this uncertainty, JD is providing a wider range of profit guidance for the next financial year than previously planned. It now forecasts a pre-tax profit of between £750 million and £850 million.
JD Sports blamed a ‘tough consumer backdrop’ for weaker sales in the UK (PA Archive)
This would mark a decline from the £852 million pre-tax profit that the company made for the year to the end of January 2026, which was down 6.4 per cent compared with the previous year.
Total organic sales for the group, which excludes the impact of acquisitions, increased by 2.1 per cent year on year to £12.66 billion.
But in the UK, it blamed a “tough consumer backdrop” for organic sales declining by 2.5 per cent, and sales on a like-for-like basis dropping by 3.9 per cent.
JD closed 24 stores, on a net basis, in the country over the past year as it pressed ahead with a focus on “fewer, bigger, better” shops.
Since the end of the financial year, JD said cold and wet weather had dampened sales and that trading in April was “volatile” with a strong Easter performance followed by fewer visitors to shops.
JD closed 24 stores, on a net basis, in the country over the past year as it pressed ahead with a focus on ‘fewer, bigger, better’ shops (PA Wire)
Regis Schultz, JD’s chief executive, said: “We delivered a resilient performance, achieving organic sales growth of 2.1 per cent despite tough market conditions.
“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.
“Whilst we continue to expect muted market growth in FY27 (2027 financial year), we remain confident in JD Group’s medium‑term trajectory, underpinned by our strong brand partnerships and agile, multi‑brand model.”