JD Sports Fashion‘s (LSE:JD.) share price has collapsed back into pennies over the last month. At 77.8p per share, it’s down again on Thursday (20 November) after another troubling trading update.
The self-styled ‘King of Trainers’ is suffering as consumers cut back on expensive tracksuits and those trainers. It’s also being battered by trade tariffs that are driving costs sharply higher.
JD’s shares are now down 31.1% over the last year. Yet as a long-term investor, could now be a good time to consider opening a position?
Fresh sales fall
Today the FTSE 100 retailer said organic sales were up 2.4% in the 13 weeks to 1 November. But things were less encouraging on a like-for-like basis. It declined 1.7% year on year.
The pace of like-for-like revenues falling slowed in North America, the company’s single largest region. They were down 1.7% during Q3 versus a 2.1% drop in the second quarter.
But this failed to boost investors’ mood. JD makes 39% of sales from Stateside customers.
In Mainland Europe, like-for-like turnover was down 1.1% last quarter. In the UK sales dropped 3.3%.
more encouragingly, sales in Asia Pacific were up 3.9% during Q3.
Tough outlook
Things look likely to remain tough given JD’s observations of late. It said that “recent indicators have shown incrementally weaker macroeconomic and consumer external data points in our key markets”.
More specifically, it noted “pressures on our core [younger] customer demographic, including rising unemployment levels, as well as near-term volatility around consumer sentiment.“
As a result, full-year profit before tax and adjusted items is tipped at the lower end of market expectations (£853m to £888m). Profits were £923m during financial 2025.
Disappointing… but better news to come?
If accurate, this would mark the second year of profits declines at JD as it struggles in a tough retail environment.
Robinhood UK analyst Dan Lane said that “it’s becoming a bit of a pattern to see organic sales up and like-for-like (LFL) sales down, and it looks like it’s still hitting the outlook with JD eyeing the low end of expectations now.”
He commented that “high street competition, manufacturers targeting customers directly and squeezed incomes are all putting pressure on LFL sales… resorting to discounts is maybe inevitable to stay relevant but it sets a tricky precedent in the mind of consumers and it can be hard to flog full-price trainers to the same shoppers after the promos end“.
However, some analysts are taking a more upbeat position.
While describing JD’s guidance downgrade as “disappointing,” Aarin Chiekrie at Hargreaves Lansdown noted that “the longer-term opportunity ahead looks promising given its strong market position“.
He added that “trading at just 6.3 times next year’s earnings, [JD’s] valuation offers plenty of upside potential if it can return to growth in key markets.”
Are JD shares a buy?
On balance, I think JD’s share price slump makes it worth serious attention from dip buyers. But it’s certainly not a stock to consider for the faint-hearted given its current troubles.
The athleisure sector still looks poised for robust long-term growth. And with its strong brand power and excellent relationships with top-tier apparel and footwear manufacturers, JD’s well placed to capitalise on this.
At current prices, I think it’s worth a close look.
