JD Sports reported a 12% dip in pre-tax profit to £629 million for the year ending in January, even as total sales grew by 12% to £12.7 billion. At the same time, the sportswear giant announced the arrival of Peter Agnefjäll as its new chairman. The former CEO of Ikea is stepping into the role to replace Darren Shapland, who had taken over as interim chair in April after the abrupt exit of Andy Higginson.
Leadership turmoil preceded the new appointment
Higginson's resignation set off a wave of uncertainty within the company. He had sought to remove CEO Régis Shultz, citing concerns over sluggish sales and a lack of progress in North America, according to the Financial Times. Some executives reportedly aligned with Higginson's stance, but his proposal lacked the required board backing to succeed. Meanwhile, JD Sports' controlling shareholder, Pentland Group, publicly supported Shultz, which sealed Higginson's fate and led to his departure.
New chair comes as JD faces uncertain future
Agnefjäll's career includes more than 20 years with Ikea, where he advanced from business area manager in 2002 to CEO in 2013. He is now entering the chairmanship at JD Sports at a critical moment. The company has forecast only 'muted' growth for the coming year, citing ongoing challenges such as weak consumer demand and economic pressures. These conditions have been worsened by the uncertainty surrounding the Iran war. JD Sports now projects pre-tax profit to fall between £750 million and £850 million, a broader range than previously outlined to account for these unpredictable conditions.