JD Sports Fashion has cautioned that the war in the Middle East could push up prices and weaken consumer demand if it leads to higher costs, as the retail giant reported a drop in its annual earnings. The fashion and sportswear chain, which has 4,811 stores worldwide, said the uncertainty about the geopolitical situation could weigh on its profits in the year ahead. JD said it had no “direct exposure” to the Middle East, and had only a handful of franchised stores in the region, and there had been no real impact on the business so far. But the company said: “Over time, the potential future impacts of heightened uncertainty may contribute to direct cost pressures, including energy and fuel costs across our store and logistics networks, respectively, as well as potential indirect impacts on pricing and consumer demand should input cost inflation emerge.” JD said that, as a result of the uncertainty, it was providing a wider range of profit guidance for the next financial year than it was previously…