British sportswear retailer JD Sports Fashion is entering Mexico, signing a franchise agreement with local group Axo to open more than 140 stores starting in 2027, the company said Monday.
Axo, which distributes over fifty international fashion and footwear brands across Latin America and recently added Lacoste to its Chile and Peru portfolio, will run both JD Sports’ physical stores and e-commerce operations in the country. The retailer said it will offer Mexican shoppers a curated range of footwear, apparel and accessories, tapping Axo’s existing network of sneaker retail locations.
JD Sports pointed to Mexico’s demographic profile as a key driver, citing a population of more than 130 million, roughly 40% of whom are under 25. The company estimates the domestic sportswear market at $6.5 billion, with growth to surpass $10 billion by 2034 on the back of running, football and lifestyle trends.
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The Mexico deal extends a franchise-led expansion strategy already used in 75 stores across Europe, the Middle East, Africa and Asia through a partnership with Courir, as JD Sports simultaneously pushes deeper into the United States.
The Latin American move comes weeks after JD Sports cut its profit outlook following a weak second quarter, hurt by softer U.S. sales. Comparable sales fell 3.1% to 3.09 billion pounds ($4.14 billion) in the quarter ended August 1, while first-half sales dropped 2.8% to 5.9 billion pounds. The group now expects annual profit of up to 800 million pounds for fiscal 2026.
The Mexico franchise marks JD Sports’ latest bid to offset domestic and U.S. pressure with faster-growing emerging markets, following a broader leadership shake-up at the group this year.