JD Sports Fashion (LON:JD) Releases Earnings Results

JD Sports Fashion (LON:JD) posted its earnings results on Wednesday. The company reported GBX 3.97 earnings per share for the quarter, Digital Look Earnings reports. JD Sports Fashion had a net margin of 3.17% and a return on equity of 14.97%.

JD Sports Fashion Price Performance

Shares of LON JD opened at GBX 74.22 on Thursday. The firm has a 50-day simple moving average of GBX 86.22 and a 200 day simple moving average of GBX 80.27. The company has a current ratio of 1.42, a quick ratio of 0.71 and a debt-to-equity ratio of 133.23. The company has a market cap of £3.84 billion, a price-to-earnings ratio of 742.20, a PEG ratio of 1.05 and a beta of 1.65.

JD Sports Fashion News Summary

Here are the key news stories impacting JD Sports Fashion this week:

• Positive Sentiment: Berenberg reaffirmed its “buy” rating and set a GBX 150 price target, implying substantial potential upside from recent trading levels. London Stock Exchange
• Positive Sentiment: JD Sports agreed a franchise partnership with Axo to enter Mexico, giving the retailer access to a growing activewear market while limiting the capital required for expansion. Citi viewed the move positively. JD Sports signs franchise deal with Axo to enter Mexican market
• Neutral Sentiment: Management maintained its full-year guidance despite weaker conditions, suggesting it expects an improvement in trading or benefits from cost and operational measures later in the year. JD Sports holds guidance as tough conditions weigh on profits
• Negative Sentiment: First-half profit fell by roughly a fifth as cost pressures, a difficult footwear product cycle and weaker North American performance weighed on results. The reported quarterly EPS was GBX 3.97, while net margin remained low at 3.17%. Cost pressures and footwear cycle push JD Sports profit down a fifth
• Negative Sentiment: Reports described a “tough” consumer backdrop, with sales weakening as shoppers remain cautious. North American weakness is particularly important because the region is a major growth market for JD Sports. JD Sports grapples with tough consumer backdrop as sales weaken
• Negative Sentiment: Investors also remain cautious about the stock’s valuation and execution risks: profitability is under pressure, leverage is meaningful, and the company must navigate weak demand while investing in international growth. JD Sports looks cheap for a reason

Analyst Upgrades and Downgrades

A number of research firms have issued reports on JD. Royal Bank Of Canada reissued a “sector perform” rating and issued a GBX 100 target price on shares of JD Sports Fashion in a research note on Monday, August 3rd. Berenberg Bank reiterated a “buy” rating and set a GBX 150 price objective on shares of JD Sports Fashion in a report on Thursday. Deutsche Bank Aktiengesellschaft restated a “hold” rating and set a GBX 95 price objective on shares of JD Sports Fashion in a report on Thursday, September 3rd. Citigroup increased their price objective on shares of JD Sports Fashion from GBX 83 to GBX 87 and gave the stock a “neutral” rating in a research note on Friday, August 21st. Finally, JPMorgan Chase & Co. lowered their price target on JD Sports Fashion from GBX 90 to GBX 86 and set a “neutral” rating on the stock in a research report on Friday, August 21st. Three equities research analysts have rated the stock with a Buy rating and six have given a Hold rating to the stock. According to data from MarketBeat, the company presently has an average rating of “Hold” and a consensus price target of GBX 191.89.

JD Sports Fashion Company Profile

JD 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, 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.