The new national living wage could result in job losses, according to JD Sports executive chairman Peter Cowgill.
Mr Cowgill warned that businesses may not be able to cope with the higher wage costs, even though consumers would have more "spending power".
His warning comes as JD Sports reported an 82% rise in pre-tax profits to £46.6 million for the first six months of its financial year. Like-for-like sales were up 10%.
The JD Sports boss said the introduction of the national living wage, which comes in in April 2016, will not affect the company's immediate recruitment plans.
"Perhaps the repercussion in the wider sense is the ongoing cost in terms of increasing employment," he added.