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JD Sports Fashion (GB:JD)
LSE:JD
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JD Sports Fashion
(LSE:JD)
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Rating:79Outperform
Price Target:
107.00p
▲(12.58% Upside)
JD Sports Fashion's overall stock score reflects its strong financial performance and strategic growth initiatives, particularly in North America. While the company faces challenges in profitability and margin pressures, its robust cash flow generation and low valuation metrics provide a solid foundation. Technical indicators suggest a positive trend, though short-term momentum is mixed.
Positive Factors
Revenue Growth
Strong revenue growth indicates effective strategic execution and market share gains, particularly in North America and Europe, supporting long-term expansion.
Cash Flow Generation
Robust cash flow generation underpins financial stability, enabling continued investment in growth initiatives and shareholder returns through dividends and buybacks.
Strategic Store Expansion
Expanding store footprint in the U.S. enhances market presence and brand awareness, driving sales growth and strengthening competitive position in a key market.
Negative Factors
Operating Margin Decline
Decreasing operating margins due to new store costs and lower gross margins could pressure profitability, affecting long-term financial performance.
Gross Margin Pressure
Reduced gross margins, impacted by promotional activities, may challenge pricing power and profitability, necessitating strategic adjustments to maintain competitiveness.
Economic Uncertainty
Economic uncertainties, including consumer finance pressures, pose risks to demand and sales, potentially impacting revenue growth and market conditions.
JD Sports Fashion (JD) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£4.94B
Dividend Yield1.05%
Average Volume (3M)14.21M
Price to Earnings (P/E)9.9
Beta (1Y)1.25
Revenue Growth14.60%
EPS Growth58.84%
CountryUK
Employees79,717
SectorConsumer Cyclical
Sector Strength84
IndustrySpecialty Retail
Share Statistics
EPS (TTM)0.05
Shares Outstanding5,047,791,500
10 Day Avg. Volume15,666,709
30 Day Avg. Volume14,208,487
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
£108.08Price Target Upside13.72% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering10
JD Sports Fashion Business Overview & Revenue Model
Company DescriptionJD Sports Fashion plc engages in the retail of branded sports fashion and outdoor clothing, footwear, accessories, and equipment for kids, women, and men. It operates through Sports Fashion and Outdoor segments. The company also retails leisure goods, sports goods, fishing gear, watches, jewellery, camping goods, boats, and bicycles, as well as distributes sports apparel and accessories, footwear, and apparel. It offers its products under the JD, Size?, Footpatrol, Finish Line, Shoe Palace, DTLR, Livestock, Sprinter, Sport Zone, Sizeer, JD Gyms, Tessuti, Scotts, Go Outdoors, Blacks, Millets, Tiso, Ultimate Outdoors, Fishing Republic, and Naylors brands. The company also operates online business. In addition, it licenses fashion brands and operates fitness centers; operates as online own label women's fashion retailer; and manufactures and distributes professional fitness equipment. The company operates 3,402 stores. It has operations in the United Kingdom, Australia, Austria, Belgium, Bulgaria, Canada, Cyprus, the Czech Republic, Denmark, Dubai, Estonia, Finland, France, Germany, Greece, Hong Kong, Hungary, India, Indonesia, Israel, Italy, Latvia, Lithuania, Malaysia, the Netherlands, New Zealand, Poland, Portugal, Republic of Ireland, Romania, Singapore, Slovakia, South Korea, Spain and the Canary Islands, Sweden, Thailand, and the United States. The company was founded in 1981 and is headquartered in Bury, the United Kingdom. JD Sports Fashion plc is a subsidiary of Pentland Group Limited.
How the Company Makes MoneyJD Sports generates revenue primarily through the sale of its products in retail stores and online. Its key revenue streams include direct sales of branded footwear and apparel, private label products, and, to a lesser extent, accessories. The company benefits from a strong omnichannel strategy, which integrates physical stores with its e-commerce platform, maximizing customer reach and convenience. Significant partnerships with leading sports brands like Nike and Adidas provide JD with exclusive product lines and promotions, enhancing its competitive edge. Additionally, the company has expanded into international markets, further diversifying its income sources and capitalizing on global demand for sports fashion.
JD Sports Fashion Earnings Call Summary
Earnings Call Date:Sep 24, 2025
(Q2-2026)
| % Change Since: |
Next Earnings Date:Jul 14, 2026
Earnings Call Sentiment Neutral
The earnings call demonstrated JD Sports' strong market position and strategic growth, particularly in North America, alongside challenges in profitability and margin pressures. While growth and market gains are promising, financial metrics such as operating profit and margin are under pressure, leading to a cautious outlook.Q2-2026 Updates
Positive Updates
Strong Organic Growth and Market Share Gains
JD Sports reported a 20% year-on-year increase in total sales at constant FX rates, with organic sales growth of 2.7%. The company gained market share in North America and Europe, reflecting a robust strategic execution.
Resilient Cash Flow and Dividend Consistency
The company delivered a 5% increase in operating cash flow to GBP 546 million and declared an interim dividend consistent with the prior year, demonstrating strong cash generation capabilities.
Strategic Store Expansions and Brand Awareness
JD Sports opened a net of 52 new stores in the U.S., converting Finish Line stores to JD, which resulted in a significant uplift in sales. Brand awareness in key U.S. markets increased from 34% to 59%.
Apparel Sales Growth
Organic apparel sales grew by 6% year-on-year, driven by a strong performance in performance apparel and street fashion, highlighting the strength of JD's multi-brand and agile business model.
Limited Impact from U.S. Tariffs
JD anticipates a limited financial impact from U.S. tariffs in the current reporting year, with direct exposure estimated at less than $10 million annually due to effective sourcing diversification.
Negative Updates
Decline in Operating Profit and Margin
Operating profit decreased by 6.3% at constant FX rates, and the group's operating margin fell by 170 basis points to 6.2%, impacted by new store costs and lower gross margins.
Lower Profit Before Tax
Profit before tax and adjusting items was 11.8% lower year-on-year at constant FX rates, influenced by increased net finance expense due to acquisition-related debt financing.
Gross Margin and Online Sales Pressure
Gross margin decreased by 40 basis points year-on-year, with online sales down 1.6% due to increased promotional activity in the U.K., indicating challenges in maintaining pricing power.
Challenges with Finish Line and Hibbett Integration
North American margins were adversely affected by the ongoing wind down of the Finish Line fascia and the integration of Hibbett, which is a lower-margin business.
Potential Impact of Economic Uncertainty
The company expressed caution regarding the trading environment, noting potential pressures from consumer finances and unemployment risks, particularly in Europe and the U.K.
Company Guidance
In the call, JD Sports reported a solid set of first-half results, indicating they are on track to meet full-year expectations despite tough trading conditions. Key metrics include a 20% increase in total sales year-on-year, driven by acquisitions, while organic sales growth was 2.7%. The gross margin was 48%, 60 basis points lower than the previous year, and the operating profit stood at GBP 369 million, down 6.3% at constant FX rates. The operating margin was 6.2%, 170 basis points lower year-on-year, and profit before tax and adjusting items was GBP 351 million, 11.8% lower. Adjusted earnings per share decreased by 8.5%. A 5% increase in operating cash flow to GBP 546 million was achieved, alongside a net debt position of GBP 125 million before lease liabilities. The interim dividend was maintained at 0.33p per share, and a new GBP 100 million share buyback program was announced. The company also reported limited U.S. tariff impacts for the year and emphasized market share gains in North America and Europe.JD Sports Fashion Financial Statement Overview
Summary
JD Sports Fashion exhibits strong financial performance with consistent revenue growth and robust cash flow generation. Despite facing increasing operational costs affecting margins, the balance sheet demonstrates an improved capital structure with a higher equity ratio. However, rising leverage and fluctuating return on equity indicate potential risks that need monitoring.Income Statement
JD Sports Fashion has consistently demonstrated strong revenue growth, with a notable increase from £6.17 billion in 2021 to £11.46 billion in 2025. The gross profit margin remained robust, averaging around 47% across the years. However, there was a slight decline in EBIT margin from 10.3% in 2022 to 7.9% in 2025, indicating rising operational costs. The net profit margin also showed some volatility, decreasing from 4.3% in 2022 to 4.3% in 2025, reflecting challenges in maintaining profitability at a net level.85
Very Positive
Balance Sheet
The company's debt-to-equity ratio increased over the years, rising from 1.71 in 2021 to 1.28 in 2025, indicating increased leverage. However, the equity ratio improved, rising from 23.9% in 2021 to 29.4% in 2025, showing a stronger capital structure. Return on equity showed fluctuation, peaking at 22.0% in 2024 and dropping to 16.8% in 2025, suggesting some inconsistency in generating returns for shareholders.79
Positive
Cash Flow
JD Sports Fashion displayed a solid growth in free cash flow, with a growth rate of 16.6% in 2025 compared to 2024. The operating cash flow to net income ratio remained strong, averaging over 2.5, indicating efficient cash generation relative to net income. The free cash flow to net income ratio was also healthy, demonstrating the company's ability to convert earnings into cash flow effectively.82
Very Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 6.43B | 11.46B | 10.54B | 10.13B | 8.56B | 6.17B |
| Gross Profit | 3.04B | 5.46B | 5.05B | 4.84B | 4.21B | 2.96B |
| EBITDA | 628.60M | 1.65B | 1.58B | 1.15B | 1.30B | 884.20M |
| Net Income | 468.20M | 490.00M | 538.80M | 142.50M | 369.70M | 224.30M |
Balance Sheet | ||||||
| Total Assets | 9.95B | 9.95B | 8.05B | 8.02B | 7.07B | 5.16B |
| Cash, Cash Equivalents and Short-Term Investments | 731.00M | 731.00M | 1.15B | 1.58B | 1.31B | 964.40M |
| Total Debt | 3.74B | 3.74B | 2.61B | 2.45B | 2.37B | 2.10B |
| Total Liabilities | 6.58B | 6.58B | 5.18B | 5.39B | 4.73B | 3.67B |
| Stockholders Equity | 2.92B | 2.92B | 2.46B | 2.12B | 1.93B | 1.24B |
Cash Flow | ||||||
| Free Cash Flow | 652.60M | 713.00M | 611.30M | 735.00M | 1.02B | 938.30M |
| Operating Cash Flow | 908.90M | 1.23B | 1.14B | 1.08B | 1.27B | 1.06B |
| Investing Cash Flow | -448.80M | -1.49B | -543.50M | -320.90M | -848.10M | -334.70M |
| Financing Cash Flow | -655.70M | -141.00M | -1.01B | -479.20M | -83.60M | -239.70M |
JD Sports Fashion Technical Analysis
Neutral
95.04
Price Trends
92.70
Positive
88.15
Positive
84.60
Positive
Market Momentum
2.18
Negative
49.11
Neutral
46.19
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:JD, the sentiment is Neutral. The current price of 95.04 is above the 20-day moving average (MA) of 94.74, above the 50-day MA of 92.70, and above the 200-day MA of 84.60, indicating a bullish trend. The MACD of 2.18 indicates Negative momentum. The RSI at 49.11 is Neutral, neither overbought nor oversold. The STOCH value of 46.19 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GB:JD.
JD Sports Fashion Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | £4.94B | 9.90 | 19.64% | 1.05% | 14.60% | 58.84% | |
70 Outperform | £2.24B | 14.44 | 121.78% | 3.73% | 3.78% | 3.44% | |
68 Neutral | £3.10B | 10.53 | 15.02% | ― | -11.05% | -24.53% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
52 Neutral | £573.46M | ― | -18.75% | ― | -20.36% | 44.33% | |
46 Neutral | £304.34M | ― | -62.59% | ― | -15.86% | -18.46% | |
38 Underperform | £156.55M | ― | -185.68% | ― | -45.91% | -120.22% |
* Consumer Cyclical Sector Average
GB:JD
JD Sports Fashion
95.04
-33.38
-25.99%
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.