JD Sports Fashion (LON: JD.) rose 4.7% on Tuesday, extending a 14.4% rally over the past month. After years of painful losses from peak levels, investors are asking whether the tide is finally turning for the FTSE 100 sportswear giant.
JD Sports hit its all-time highs around 235p (post-split) in late 2021, riding a wave of post-pandemic consumer demand and aggressive global expansion.
Since then, the stock has been a slow-motion disaster for shareholders. By early 2026, the shares had collapsed to below 65p — a fall of more than 70% from peak — weighed down by profit warnings, margin pressure, a weakening athleisure market, a governance overhaul, and persistent macroeconomic headwinds on both sides of the Atlantic.
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The turning point may have come on 7 May 2026, when JD reported its full-year results. Revenue climbed a healthy 10.5% to £12.66 billion, driven partly by its 2024 acquisitions of Hibbett and Courir.
But statutory profit before tax fell 7.7% to £852 million, with like-for-like sales declining 2.1% and operating margins narrowing. The numbers were hardly a ringing endorsement, yet the market took them reasonably well — and the shares have gained roughly 20% since that release, currently trading at 81.28p.
The reason may lie beneath the headline figures. Free cash flow surged to £956 million — more than double reported net income — while the group ended the year with net cash of £311 million and no non-lease debt. Management backed this up with a 20% dividend hike and a £200 million share buyback, signalling confidence in the balance sheet even as trading remains muted.
The bear case, however, remains real. FY27 profit guidance of £750–850 million implies another potential year of earnings decline. CEO Régis Schultz has flagged “muted market growth” ahead, ongoing like-for-like pressure, and uncertainty stemming from geopolitical tensions including the Middle East conflict. JD is also in the midst of a major restructuring of its Hibbett store estate in North America, with approximately 175 closures planned over three years.
The Verdict
The recent rally looks more like a relief bounce off deeply oversold levels than a confirmed turnaround. The fundamentals suggest a floor may be forming, but investors will need to see sustained like-for-like improvement before calling time on one of the FTSE 100’s great falls from grace.
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