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JD Sports Share Price Moving Near to 52 Week Lows

Asktraders News Team trader
Updated 20 Jan 2025

JD Sports ‘s share price (LON: JD) has stumbled through the early weeks of 2025, down 11.46%, as the firm looks to carve a path through a series of challenges. The trend has been bearish for a period, with JD now down precariously close to 52 week lows of 83.50p after a further 0.88% decline on the day.

In the last week, JD Sports revised its profit expectations lower, attributing this to more severe market headwinds than initially anticipated. The company's debt is another issue, as rising bond yields have negatively impacted the company.

Despite these challenges, the firm is pushing ahead with its expansion plans. The company intends to open approximately 200 new stores globally in this financial year and is making significant strides in North America through major acquisitions and the launch of new, attractive stores. This expansion move signifies JD Sports' ambition to increase its market share and presence in the international market.

In the long run, some investors, as well as industry experts, believe that JD Sports Fashion has the potential to perform well over a three to five-year period due to its strategic growth plans. This optimism is reflected in the company's current stock valuation, which is trading at less than seven times the FY2026 earnings forecast, indicating potential future growth.

While JD Sports Fashion is currently facing some financial obstacles, such as rising costs and pressure from market conditions, its committed expansion plans and the CEO's recent share purchase paint a picture of a company potentially poised for recovery and growth in the coming years. Markets are not seeing things quite as rosy, and a a reversal that is well supported would be desired before making any moves.

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