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JD Sports Fashion (GB:JD)
LSE:JD
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JD Sports Fashion
(LSE:JD)
Rating:78Outperform
Price Target:
98.00p
▲(2.42% Upside)
Positive Factors
Acquisition
The acquisition of Hibbett is expected to contribute positively to future profits.
Financial Performance
JD Sports reported 1H25 adj. PBT of £405.6mn which beat the company-compiled consensus of £384mn.
Sales Growth
Sales growth in Europe and North America has been strong, with increases of 15.6% and 13.2% respectively.
Negative Factors
Consumer Sentiment
Weak consumer sentiment and a promotional environment are affecting the company's sales forecasts.
Growth Outlook
The stock has been downgraded to Neutral due to a softer growth outlook.
Lease Costs
Higher lease interest is impacting the financial outlook.
JD Sports Fashion (JD) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£4.82B
Dividend Yield1.05%
Average Volume (3M)12.96M
Price to Earnings (P/E)10.0
Beta (1Y)1.08
Revenue Growth8.69%
EPS Growth-9.09%
CountryUK
Employees79,717
SectorConsumer Cyclical
Sector Strength80
IndustrySpecialty Retail
Share Statistics
EPS (TTM)0.07
Shares Outstanding5,061,406,000
10 Day Avg. Volume12,575,928
30 Day Avg. Volume12,955,646
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
£107.08Price Target Upside11.91% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering9
JD Sports Fashion Business Overview & Revenue Model
Company DescriptionJD Sports Fashion (JD) is a leading retailer of sports fashion and lifestyle apparel, footwear, and accessories. Founded in the UK, the company operates a diverse range of retail outlets and online platforms, catering to a broad customer base that includes sports enthusiasts and fashion-conscious individuals. JD is known for its extensive selection of premium brands, including Nike, Adidas, and Puma, as well as its own private label offerings. The company is primarily active in the retail sector, focusing on footwear and sportswear while also expanding into the athleisure market.
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:May 21, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Sep 24, 2025
Earnings Call Sentiment Neutral
JD reported strong revenue growth and expansion in North America and Europe, bolstered by the acquisition of Hibbett. However, the company faced challenges in the U.K. with a decline in revenue and profit margins due to a promotional market environment. Despite these challenges, the overall financial health remains strong with a focus on international growth and operational excellence.Q2-2025 Updates
Positive Updates
Record-Breaking Revenue
For the first time, JD's revenues surpassed the £5 billion milestone, reflecting a growth of 5.2% reported and 6.8% on a constant-currency basis.
Strong Performance in North America and Europe
North America revenue grew by 16% while Europe saw a 6% increase, with North America now accounting for 35% of total revenues.
Hibbett Acquisition
Completed the acquisition of Hibbett, adding over 1,100 stores and contributing £61 million to revenue within 10 days of ownership.
Operating Margin and Cash Flow
Operating margin increased by 20 basis points including Hibbett, and the company generated an operating cash flow of close to £300 million.
International Expansion
JD's share of business outside the U.K. now stands at 70%, reflecting a significant strategic shift towards more international growth.
Positive Like-for-Like Sales Growth
Achieved like-for-like sales growth of 0.7% and organic sales growth of 6.4%.
Negative Updates
Decline in U.K. Revenue
U.K. revenue was down 4% and operating profit fell 12% due to a tough trading environment and promotional pressures.
Gross Margin Pressure
Gross margin was down 20 basis points from the prior period, impacted by ongoing promotional activities, especially in the U.K.
Statutory Profit Decline
Statutory profit before tax fell 64% due to increased adjusting items, predominantly non-cash, including asset impairments.
Promotional Market Environment
The market remained highly promotional, impacting profit margins, particularly in the U.K. and North America.
Company Guidance
In the recent call, the company provided guidance that underscores its continued resilience and strategic focus despite challenging market conditions. For the first half of fiscal year 2025, the company achieved a significant milestone with revenues surpassing £5 billion, supported by a 9% organic sales growth within the JD brand, and double-digit organic sales increases in North America and Europe. The operating margin was maintained in line with the previous year, excluding the Hibbett acquisition, and increased by 20 basis points when including Hibbett. The company also reported an operating cash flow close to £300 million and maintained a strong balance sheet with net cash before lease liabilities of £40 million. Despite a reported 64% decrease in statutory profit before tax due to non-cash adjusting items, the adjusted earnings per share rose by 4.5%. The company reiterated its full-year guidance for FY25, projecting a profit before tax and adjusting items in the range of £955 million to £1,035 million, with expectations of being at the lower end of the like-for-like revenue growth range. The interim dividend was increased by 10% to 0.33 pence, reflecting the company's commitment to shareholder returns amidst ongoing strategic investments.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
Positive
95.68
Price Trends
89.34
Positive
84.75
Positive
85.37
Positive
Market Momentum
2.45
Negative
58.97
Neutral
41.75
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:JD, the sentiment is Positive. The current price of 95.68 is above the 20-day moving average (MA) of 92.09, above the 50-day MA of 89.34, and above the 200-day MA of 85.37, indicating a bullish trend. The MACD of 2.45 indicates Negative momentum. The RSI at 58.97 is Neutral, neither overbought nor oversold. The STOCH value of 41.75 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:JD.
JD Sports Fashion Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | £4.82B | 10.01 | 18.22% | 1.05% | 8.69% | -9.09% | |
73 Outperform | £2.32B | 15.31 | 84.81% | 3.52% | 3.07% | 1.42% | |
63 Neutral | £2.81B | 10.11 | 15.02% | ― | -11.05% | -24.53% | |
61 Neutral | $17.96B | 13.14 | -5.29% | 3.00% | 1.25% | -13.95% | |
46 Neutral | £321.64M | ― | -62.59% | ― | -15.86% | -18.46% | |
45 Neutral | £416.45M | ― | -27.20% | ― | -14.37% | -28.78% | |
38 Underperform | £183.59M | ― | -185.68% | ― | -45.91% | -120.22% |
* Consumer Cyclical Sector Average
Performance Comparison
GB:JD
JD Sports Fashion
95.68
-36.45
-27.59%
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GB:FRAS
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687.00
-136.50
-16.58%
GB:DEBS
boohoo group Plc
13.84
-15.40
-52.67%
GB:THG
THG
27.00
-32.30
-54.47%
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.