JD Sports Fashion is set to expand its presence in Mexico through a new franchise agreement that will see the opening of more than 140 stores across the country. The UK-based sportswear retailer, which has experienced a slowdown in sales and profits in recent years, described Mexico as “one of the fastest-growing sportswear markets in the world” and views the move as a key step in its global growth strategy.

The expansion will be carried out in partnership with Grupo Axo, a prominent Latin American multi-brand retail and wholesale operator with a strong footprint in Mexico, Chile, Peru, and Uruguay. Founded in 1994, Grupo Axo manages and distributes clothing, footwear, beauty, and lifestyle products through a combination of direct-to-consumer stores, wholesale channels, and e-commerce platforms. The group holds distribution licenses and commercial partnerships with several major global brands including Tommy Hilfiger, Calvin Klein, Victoria’s Secret, Guess, Nike, Bath & Body Works, and Gap.

JD Sports, established in 1981 in Bury, Greater Manchester by founders John Wardle and David Makin, has built its reputation through aggressive international expansion and acquisitions, particularly in the U.S. market, alongside a retail model that leverages youth sneaker culture. The company already operates stores across North America, Europe, the Middle East, Africa, and Asia. However, it has faced significant challenges recently, including inflationary pressures post-pandemic, shifts in consumer spending habits, and a slowdown in product innovation from Nike—which accounts for nearly half of JD’s sales.

Shares in JD Sports have declined by about 14 percent over the past year, with a notable 15 percent drop following a profit warning due to weak sales in North America. The company forecast its full-year profit before tax and adjusting items to be between £700 million and £800 million, revised downward from an earlier range of £750 million to £850 million. First-half results were scheduled for release shortly after the announcement.

Régis Schultz, JD Sports’ chief executive, is leading efforts to revive the company’s performance by increasing store openings worldwide, diversifying brand offerings beyond Nike, and improving operational efficiencies. Schultz recently retained his position following an internal challenge from former chairman Andy Higginson, who eventually stepped down. Pentland Group, JD Sports’ largest shareholder, has publicly supported Schultz’s long-term strategy despite ongoing investor frustration over the company’s share price.

Highlighting the importance of the Mexican market, Schultz noted the country’s large population of approximately 130 million people, nearly 40 percent of whom are under 25 years old—a demographic closely aligned with JD Sports’ target consumer base. He emphasized that JD’s blend of sport, music, and fashion resonates well with Mexican consumers, signaling confidence in the brand’s potential to establish a strong local presence.

Grupo Axo’s chairman and chief executive, Andrés Gómez, described the partnership as a “significant moment for sports fashion in Mexico,” underscoring the growing demand for athletic and lifestyle apparel in the region. The collaboration aims to leverage Grupo Axo’s extensive retail expertise to successfully introduce JD Sports into the Latin American market.