JD Sports has revealed plans to close 175 Hibbett stores in North America over the next three years as part of a strategic effort to optimize its retail footprint. The announcement was made by CEO Régis Schultz during the company’s fourth-quarter fiscal 2026 earnings call, where he outlined the company’s approach to enhancing store productivity.
"We continue to maintain a disciplined focus on store productivity, with actions taken to close smaller stores in underperforming locations and prioritize new larger stores in locations with stronger sale productivity potential", Schultz told investors.
Strategic Realignment for Hibbett Stores
JD Sports, which acquired the Alabama-based Hibbett brand in 2024 in a $1.11 billion deal, has been steadily reorganizing its store network. According to Schultz, this "optimization" effort targets smaller, underperforming stores located in remote areas – especially those that focus on legacy sporting goods offerings. These locations, he noted, are "not aligned with the group’s strategy."
This strategy has already resulted in notable changes over the past fiscal year. As of February 1, 2025, JD Sports reported 999 Hibbett stores in operation. By January 31, 2026, that number had decreased to 982 stores, reflecting 61 closures offset by 44 new openings. Schultz confirmed that these efforts to streamline the Hibbett portfolio will continue, with 175 additional closures planned to further align the brand with the group’s broader objectives.
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Financial Performance Amid Store Closures
Despite the closures, JD Sports reported solid growth in fiscal 2026. The company achieved a 10.5 percent increase in net sales, rising to £12.7 billion, up from £11.5 billion in fiscal 2025. However, profit before tax and adjusting items fell by 7.7 percent, landing at £852 million compared to £923 million the previous year. Schultz attributed this mixed financial performance to challenging market conditions, adding, "We delivered a resilient performance, achieving organic sales growth of 2.1 percent despite tough market conditions."
While footwear sales were flat during the year, apparel sales provided a bright spot, increasing by 5 percent.
Looking Ahead
JD Sports is preparing for what Schultz described as "muted market growth" in fiscal 2027. The company anticipates organic sales to remain flat year-over-year, with like-for-like sales expected to decline by 2.3 percent. Profit before tax and adjusting items for the year is forecasted to fall between £750 million and £850 million.
Schultz emphasized the company’s commitment to navigating these challenges with a clear focus on operational discipline. "For the year ahead we are focused on further enhancing and optimizing our product offer, customer experience and store footprint, and delivering strong cost and cash discipline – in essence, ‘controlling the controllables,’" he stated.
The planned Hibbett closures mark another significant step in JD Sports’ broader strategy to adapt its retail operations in North America and prioritize locations with higher sales potential. As these changes unfold, the company continues to position itself for long-term growth in an evolving retail landscape.