JD Sports has seen its year-on-year sales increase by 4.2%, after tackling what it described a "challenging market".

Across the sports retail group, like-for-like (LFL) sales grew by just 0.1% in the final quarter of the year, dropping by 3.2% in the UK.

Over the course of the financial year, however, total sales increased by 3.6% to £10.5bn, with LFL sales jumping by 4.2%.

JD operates across multiple regions, including the UK and Ireland, Europe, North America and Asia Pacific, and opened 215 new stores in the last financial year.

The group also expects to be in line with its profit before tax estimate of £915m to 935m.

This was lowered by 10% earlier this year after the retailer struggled with sales following mild weather and heavy discounting on products, which affected sales in the run up to the Christmas period.

Chief executive officer at JD Sports, Regis Schultz, said: "In our FY24 financial year, we outperformed the sportswear market, reflecting the strength of our business. We achieved LFL sales growth of over 4%, organic growth of over 8% and our athleisure fascias achieved organic growth of over 10%.

"We made good strategic progress, opening 215 new JD stores, and focusing our effort on developing JD and enhancing EPS through taking full control of ISRG and MIG. We expect profit before tax for the year to be in line with the guided range given in January."

Looking forward, JD said the market remains "challenging due to less product innovations and elevated promotional activity in key markets, particularly online".

It is anticipating that trading conditions will improve throughout the year, with a "busy sporting summer" and an "improving product pipeline" towards the end of the year.

JD has also published guidance for the 2025 financial year, estimating a profit before tax of between £900m and 980m, with a LFL sales growth of 1-4%.

Equity analyst at Hargreaves Lansdown, Guy Lawson-Johns, added: "Analysts are expecting next year’s profit before tax to land at the very top end of JD’s £900-980m 2025 guidance, which could be a tall order if challenging markets prevail.

"But the future fortunes of JD remain inexplicably linked to Nike’s success. Estimates suggest Nike sales contribute to 50-55% of JD’s sales globally. The closeness of its relationship provides the exclusive products and competitive pricing that lures in punters to part with their cash, but it also creates a dependency.

"If this lifecycle management is executed well, long term we could see a reduction in the type of discounting which contributed to JD’s outlook disappointment in January. But investors should be prepared for short-term headwinds. And JD’s focus away from performance wear may mean it misses out on the Paris Olympics demand uplift Nike are banking on."

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