JD Sports anticipates a period of fluctuating market behavior in the coming year and is implementing adjustments to its operations, including the closure of over a dozen stores.
The company attributes this instability partly to shifts in American trade policies enacted under recent leadership. While JD Sports expects its profits and sales for the preceding year to align with prior projections despite a “difficult” marketplace, investor confidence has recently been shaken by concerns about potential exposure to new tariff regulations.
Consequently, the retailer is now planning to consolidate its presence, closing approximately 50 stores—most of which are situated in eastern Europe. A significant portion of JD Sports’ product line, including popular items like Nike trainers often manufactured in countries such as Vietnam, faces substantial import duties. The company has stated that it’s premature to fully assess the financial implications of these tariff changes on its overall performance.
“We anticipate a volatile trading environment within our key markets throughout the year and have commenced operations consistent with our expectations,” JD Sports communicated to shareholders.
“The recently announced proposed tariff adjustments are being closely monitored, but their ultimate effect remains unclear at this point,” the company further stated.
“We maintain ongoing communication with our brand partners; however, it is too early to comment on the broader sector impact,” JD Sports added.
Despite these concerns, the most recent quarter revealed a modest increase in revenue, largely fueled by strong performance within its European division. Specifically:
* Like-for-like revenues increased by 0.3 percent over the 13 weeks leading up to February 1st.
* Organic revenue growth reached 5.6 percent during this period.
* Full-year like-for-like revenues also showed a positive increase of 0.3 percent.
The company projects a pre-tax profit ranging between £915 million and £935 million for the year, meeting previously established targets.
Looking ahead, JD Sports intends to expand its retail presence with approximately 150 new store openings while simultaneously undertaking around 100 conversions or renovations of existing stores. The aforementioned closures in eastern Europe represent a strategic realignment of their retail network as they adapt to the evolving trade landscape and navigate these uncertain conditions.
JD Sports’ US market accounts for nearly 40 percent of its revenue, and the company has affirmed its targets for the upcoming year despite the initiation of these new tariff policies.
