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JD Sports Fashion (GB:JD)
LSE:JD
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JD Sports Fashion
(LSE:JD)
Rating:77Outperform
Price Target:―
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
£4.11B
Dividend Yield1.67%
Average Volume (3M)18.35M
Price to Earnings (P/E)8.5
Beta (1Y)0.94
Revenue Growth2.85%
EPS Growth61.98%
CountryUK
Employees79,717
SectorConsumer Cyclical
Sector Strength59
IndustrySpecialty Retail
Share Statistics
EPS (TTM)0.07
Shares Outstanding5,119,572,000
10 Day Avg. Volume12,553,845
30 Day Avg. Volume18,347,570
Financial Highlights & Ratios
PEG Ratio-0.96
Price to Book (P/B)3.96
Price to Sales (P/S)0.00
P/FCF Ratio11.42
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
£95.44Price Target Upside23.47% Upside
Rating ConsensusHold
Number of Analyst Covering9
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 Fashion makes money primarily through the sale of branded sportswear and footwear in its retail stores and online platforms. The company's revenue streams include direct consumer sales from its physical stores and e-commerce websites. JD benefits from strong relationships with major sportswear brands, allowing it to offer exclusive products and collaborations that attract a broad customer base. Additionally, JD has expanded its portfolio through strategic acquisitions of other retail brands, further diversifying its offerings and market reach. Key partnerships with global brands and a focus on appealing to fashion-forward as well as performance-driven consumers significantly contribute to its earnings.
JD Sports Fashion Earnings Call Summary
Earnings Call Date:May 21, 2025
(Q2-2025)
| % Change Since: -16.16%|
Next Earnings Date:Sep 16, 2025
Earnings Call Sentiment Positive
The earnings call highlighted strong revenue growth, especially in North America and Europe, successful expansion efforts, and a resilient cash flow position. However, challenges remain in the U.K. market, a significant statutory profit decline, and gross margin pressure. The overall sentiment is mixed but leans positive due to significant strategic achievements and growth momentum.Q2-2025 Updates
Positive Updates
Record-Breaking Revenue
First-half performance in line with expectations, with revenues breaking the £5 billion milestone for the first time, showcasing resilience amid volatile market conditions.
Strong Growth in North America and Europe
North America and Europe delivered double-digit organic sales growth with 9% organic sales growth overall for the JD brand. North America is now the largest market by revenue and profit.
Cash Flow and Balance Sheet Strength
Operating cash flow of close to £300 million and net cash before lease liabilities of £40 million at the period-end, maintaining a strong balance sheet despite increased CapEx and acquisitions.
Hibbett Acquisition Success
The acquisition of Hibbett added £61 million in revenue from just 10 days of contribution, highlighting a successful acquisition strategy.
Continued Store Rollout and Expansion
On track for ambitious growth with 102 new JD stores and 32 new complementary stores opened in the first half, aiming for 200 JD store openings annually.
Negative Updates
U.K. Market Challenges
Revenue in the U.K. was down 4% and operating profit down 12% due to a tough trading environment, promotional activity, and a challenging apparel season.
Statutory Profit Decline
Statutory profit before tax was down 64%, attributed to increased adjusting items year-on-year, including asset impairments and acquisition-related adjustments.
Gross Margin Pressure
Gross margin slightly down by 10 basis points, driven by promotional activity in the apparel market, especially in the U.K.
Challenges in Asia Pacific
Revenue in Asia Pacific dropped 4% with profit down 19%, reflecting the exit from South Korea and increased investment costs.
Company Guidance
In the recent call, JD Group provided a comprehensive overview of its financial performance and strategic initiatives for the first half of the fiscal year 2025. The company achieved a record-breaking revenue milestone of over £5 billion, with 9% organic sales growth for the JD brand and a strong operating cash flow of nearly £300 million. Despite a challenging market environment, the group maintained its operating margin, even improving it by 20 basis points with the inclusion of the Hibbett acquisition. The call highlighted JD's strategic focus on expanding its North American market share, aiming for a 10% market share post-Hibbett acquisition, and emphasized its disciplined approach to growth, including a targeted annual opening of around 200 JD stores globally. JD also underscored its investment in supply chain infrastructure, digital transformation, and omnichannel capabilities as crucial drivers for future growth, maintaining a robust balance sheet with net cash of £40 million before lease liabilities.JD Sports Fashion Financial Statement Overview
Summary
JD Sports Fashion exhibits strong financial performance with robust revenue and profit growth, efficient operations, and a sound capital structure. The company is well-positioned financially, but there is room for improvement in cash flow management to sustain long-term growth.Income Statement
The company displays strong revenue growth with a notable increase in total revenue from the previous year, achieving a 4.12% growth. It maintains a healthy gross profit margin of 47.89% and a solid net profit margin of 5.11%. The EBIT margin is robust at 8.8%, and the EBITDA margin is 14.89%, indicating efficient operations. Such metrics highlight stable profitability and operational efficiency.85
Very Positive
Balance Sheet
The balance sheet reflects a balanced financial position with a moderate debt-to-equity ratio of 1.06, suggesting manageable leverage. The return on equity is strong at 21.93%, indicating effective utilization of equity to generate profits. The equity ratio stands at 30.53%, demonstrating a stable capital structure. Overall, the balance sheet shows a sound financial foundation with potential for further improvements in equity position.78
Positive
Cash Flow
Operating cash flow is robust and supports net income with a ratio of 2.12, indicating strong cash generation capabilities. However, the free cash flow has decreased compared to the previous year, resulting in a negative growth rate of -16.81%. Despite this, the free cash flow to net income ratio remains favorable at 1.13, highlighting effective cash management practices.82
Very Positive
| Breakdown | |||||
| TTM | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 | Mar 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 10.79B | 10.54B | 10.13B | 8.56B | 6.17B | 6.11B | Gross Profit |
| 5.18B | 5.05B | 4.84B | 4.21B | 2.96B | 2.87B | EBIT |
| 834.70M | 927.20M | 931.50M | 1.02B | 385.00M | 426.60M | EBITDA |
| 1.42B | 1.57B | 1.20B | 1.59B | 869.20M | 878.00M | Net Income Common Stockholders |
| 320.70M | 538.80M | 226.70M | 369.70M | 224.30M | 246.10M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 946.30M | 1.15B | 1.58B | 1.31B | 964.40M | 465.90M | Total Assets |
| 9.35B | 8.05B | 8.02B | 7.07B | 5.16B | 4.35B | Total Debt |
| 3.78B | 2.61B | 2.45B | 2.37B | 2.10B | 2.03B | Net Debt |
| 2.83B | 1.46B | 869.90M | 1.06B | 1.13B | 1.56B | Total Liabilities |
| 6.51B | 5.18B | 5.39B | 4.73B | 3.67B | 3.06B | Stockholders Equity |
| 2.41B | 2.46B | 2.12B | 1.93B | 1.24B | 1.22B |
| Cash Flow | Free Cash Flow | ||||
| 630.20M | 611.30M | 735.00M | 1.02B | 938.30M | 683.60M | Operating Cash Flow |
| 1.16B | 1.14B | 1.08B | 1.27B | 1.06B | 854.00M | Investing Cash Flow |
| -1.33B | -543.50M | -320.90M | -848.10M | -334.70M | -261.70M | Financing Cash Flow |
| -291.10M | -1.01B | -479.20M | -83.60M | -239.70M | -371.40M |
JD Sports Fashion Technical Analysis
Negative
77.30
Price Trends
78.76
Negative
79.18
Negative
99.32
Negative
Market Momentum
-0.57
Positive
39.39
Neutral
12.17
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:JD, the sentiment is Negative. The current price of 77.3 is below the 20-day moving average (MA) of 83.35, below the 50-day MA of 78.76, and below the 200-day MA of 99.32, indicating a bearish trend. The MACD of -0.57 indicates Positive momentum. The RSI at 39.39 is Neutral, neither overbought nor oversold. The STOCH value of 12.17 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:JD.
JD Sports Fashion Peers Comparison
Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | £4.11B | 8.45 | 18.22% | 1.67% | 2.85% | 61.98% | |
76 Outperform | £2.34B | 15.50 | 84.81% | 2.80% | 3.07% | 1.42% | |
69 Neutral | £3.00B | 10.15 | 16.46% | ― | -6.82% | -37.46% | |
63 Neutral | $6.98B | 11.41 | 2.80% | 4.24% | 2.68% | -24.94% | |
49 Neutral | £376.54M | ― | -62.59% | ― | -15.86% | -18.46% | |
49 Neutral | £364.01M | ― | -27.20% | ― | -14.37% | -28.78% | |
48 Neutral | £267.10M | ― | -96.36% | ― | -16.32% | -202.39% |
* Consumer Cyclical Sector Average
Performance Comparison
GB:JD
JD Sports Fashion
77.30
-43.41
-35.96%
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ASOS plc
315.50
-45.50
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GB:DNLM
Dunelm Group
1,183.00
217.46
22.52%
GB:FRAS
Frasers Group
716.50
-141.00
-16.44%
GB:DEBS
boohoo group Plc
22.20
-10.84
-32.81%
GB:THG
THG
25.04
-42.16
-62.74%
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.