JD Sports closes 13 stores in the UK: reasons for the sharp drop in sales.

Closure of JD Sports stores

According to The Sun: The well-known sports chain has closed 13 stores due to declining sales over the past six months.

JD Sports, which has 412 branches in Ukraine, announced earlier this year that it would close 50 stores worldwide.

JD Sports announced today the closure of 13 stores six months before August PA

This retailer, popular for branded footwear and sportswear, reported the closure of 13 stores in the UK in its annual report.

The company also noted a decline in sales and profits compared to last year, which is partly due to consumers' financial difficulties in the UK.

Among the closed stores is a branch in Dagenham, located in the Heathway shopping center, which shut its doors on September 6.

However, despite the closures, JD Sports announced plans in April to open 150 new stores and make 100 relocations and rebrandings worldwide.

In June of this year, the company opened the world's largest JD Sports store in the Trafford shopping center in Manchester.

CEO Régis Schultz, during a meeting with investors, expressed caution regarding the business in the second half of the financial year.

Financial results

This situation arises after the company reported a 2.5% decrease in total sales to £5.94 billion for the 26 weeks ending August 2.

Despite this, organic sales grew by 2.7%, and total sales rose by 18% thanks to acquisitions of the Hibbert and Courir brands.

Yet, JD Sports noted that comparable sales fell by 3.8% in North America and by 3.3% in the UK.

The company explained the low sales in the UK as 'tough comparative conditions' from the previous year due to the UEFA Euro 2024, which particularly impacted football shirt sales.

Adjusted profits before tax decreased by 13.5% to £351 million for the half year.

The company emphasized that these results are in line with expectations and show that the business is still moving towards achieving its annual goals.

Operating profits in the UK fell by 6.2%, which is linked to high labor, rental costs, and investments in technology and cyber resilience.

“We achieved organic sales growth of 2.7% in the first half of the year, despite a challenging trading environment,” said Mr. Schultz, CEO of JD Sports.

“This demonstrates the resilience of our business, based on our flexible multi-brand model, wide geographical presence and unparalleled connection with customers.”

“Despite caution regarding the trading environment in the second half, we expect limited impact from US tariffs this financial year, and our annual profit before tax and adjustments will be in line with current market expectations,” he added.

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JD Sports faces serious challenges as sales continue to gradually decline, prompting it to reduce its store network. However, plans to open new locations and actively develop in other markets may help overcome these difficulties. Observing changes in financial results, it is worth paying attention to the company's strategies that may impact its future situation.