JD Sports profits tumble despite 10.5% sales growth in fiscal 2026
JD Sports has reported a drop in profits for fiscal 2026, despite a rise in overall sales. The company now expects slower growth in the coming year, with plans to close dozens of stores in North America. Management remains upbeat about long-term prospects, focusing on product improvements and customer experience. The retailer saw net sales climb 10.5% to £12.7 billion in fiscal 2026. However, profit before tax and adjusting items fell 7.7% to £852 million. Footwear sales stayed flat, while apparel sales grew by 5%.
Last year, JD Sports closed 61 Hibbett stores and opened 44 new locations. It also took a £28 million impairment charge linked to underperforming stores. Looking ahead, the company plans to shut 175 Hibbett outlets over the next three years as part of a broader optimisation plan.
For fiscal 2027, JD Sports forecasts profit before tax and adjusting items to range between £750 million and £850 million. Organic sales are expected to remain flat, with like-for-like sales dipping by 2.3%. The company attributes this to subdued market conditions but insists its medium-term strategy remains on track. JD Sports is reshaping its North American operations while preparing for a challenging year ahead. The focus on refining its product range, store network, and customer engagement will shape its performance in the coming period. Analysts will watch closely as the retailer navigates weaker market growth and ongoing restructuring.
