Shares in JD Sports have fallen by almost 10% after the retailer posted an 11.8% drop in its profit before tax to £715m in the year to 1 February.

The firm said the reduction in its year-on-year profit was partly due to an increase of £53m in adjusting items.

Furthermore, continued investment in infrastructure, controls and security were also to blame for a 4% reduction in its profit for tax and adjusting items.

The sports retailer also recorded a 2.6% decline in its operating profit to £903m, although its revenue increased by 8.7% to £11.4bn.

Although JD Sports said that its trading in the 13 weeks to 3 May was in line with expectations, the firm highlighted a number of issues surrounding the tariffs introduced by President Trump.

These include impacts on consumer confidence and the cost of goods and services for US customers, which accounts for 40% of its sales.

Furthermore, with many of its brand partners sourcing their products from South East Asia, JD said it expects mitigating actions to be taken across the supply chain to ensure that prices remain competitive.

Investment director at AJ Bell, Russ Mould, stated: "JD has been given a right kicking by the market after a weak start to its new financial year and warning that tariffs could hit demand.

"The tariffs situation should not be a surprise to the market, yet the fact JD has spelled it out in its results has clearly spooked some investors. It means the shares are now down around 8% year-to-date.

"JD has thrived on consumers’ willingness to load up on the latest footwear, with many people viewing trainers and sneakers as collectables rather than functional items. It has also capitalised on the athleisure boom, selling a wide range of fitness clothing to the mass market. There is a risk both of these trends run out of steam or at least go through a temporary moment of weakness as individuals reassess their spending choices."

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