JD Sports Fashion plc, the Bury-based FTSE 100 retailer, reported a small increase in sales and a dip in profit for the year as it faced higher costs and a sluggish shopping environment. Its shares fell 8% to 123p.

JD Sports, one of the UK’s biggest retailers, with 3,317 stores worldwide, said revenue rose 2.7% to £10.397 billion in the comparable year-ago period. Profit before tax and adjusting items fell 8% to £912.4 million, in line with revised guidance the company gave in January.

“This was lower than we anticipated at the half year due to lower revenue in the second half of the period combined with continued cost investment for future growth,” the company said.

Chief Executive Officer 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.”

He added: “We have started the new financial year with Q1 in line with our expectations in a volatile market and we are on track to deliver our profit guidance for the full year. Looking further ahead, we have a strong business model and a clear strategy to deliver long-term growth and value creation for our shareholders.”

JD Sports reiterated its guidance for profit to be in the range of £955 million to £1.035 billion this financial year, despite the slow retail environment.

“Achieving that will be a tall order if challenging markets prevail, but through the store rollout program, the company is taking proactive steps to shape its future,” said Guy Lawson-Johns, equity analyst, Hargreaves Lansdown.