JD Sports has seen its profit before tax drop by 7.5% to £917.2m in the 53 weeks to 3 February, as it increased spending on "people, stores, systems and supply chain".

Despite the drop in profit, the firm said that it remained in line with the revised guidance provided in January.

The sportswear store recorded organic sales growth of 9% in the same period, with organic sales of premium sportswear also jumping by 10.9%.

JD Sports also saw its revenue increase by 2.7% to £10.4bn, as a result of disposals.

The group, which plans to open over 200 new stores in the 2025 financial year, saw its new stores exceed internal sales expectations by 20% on average.

As part of this strategy, it has opened a new distribution centre in the Netherlands and is aiming to roll out a new website platform in the same financial year.

Chief executive officer (CEO) at JD Sports Fashion, Régis Schultz, said: "In the period, we again outperformed the market delivering organic sales growth of 9% and premium sports fashion organic sales growth of 11%. This strong revenue performance was delivered in a challenging market, particularly through our peak trading period.

"We made important strategic progress: putting the JD Brand First through opening over 200 new JD stores; strengthening our Complementary Concepts through the proposed acquisitions of Courir and, announced after the period end, Hibbett; simplifying the group by taking full control of ISRG and MIG and divesting non-strategic businesses; building the right governance and organisation for a global group of our size; and investing in our people and infrastructure to deliver our growth strategy."

Looking forward, the firm said that its Q1 performance is in line with expectations, and it is maintaining full-year profit before tax and adjusting items guidance between £955m-£1.04bn.

Lead equity analyst at Hargreaves Lansdown, Sophie Lund-Yates, said: "Since joining in 2022, CEO Régis Schultz hasn’t shied away from ambitious expansion plans in North America and Europe.

"With growth seemingly not coming quickly enough, the latest billion-dollar Hibbett deal will see the British footwear retailer accelerate its North American growth plans. Adding over 1,000 stores in a key growth market is an attractive proposition, and while the focus on acquisitions may leave little room to increase the dividend, gearing up for future growth could be the best use of capital.

"The opportunity in the US is hard to ignore, with four times the sportswear sales of European markets combined last year. Given JD's strong track record of acquisitions in the US, bolstering its presence in the southeastern region makes strategic sense. However, weaker outlooks from brands like Nike and Puma illustrate the continued demand challenges being faced. JD Sports' strategy execution is impressive and the opportunity for growth is there, but with consumer sentiment and demand still looking hazy, building out capacity ahead of demand is a significant risk to take."

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