JD Sport is a well known British company, mainly focusing in Sports clothing. They own many brands such as millets and Blacks as well as size? and Sprinter, a popular brand in Spain. Recently JD Sport have had large amounts of success according to their 2016 annual report. Total revenue went up 20% form 1,522.3 million(2015) to £1,821.7(2016). In addition to this there has been a 42.6% increase in basic earnings per share. JD Sport has kept a good, strong cash flow a long with encouraging profit. It should be noted though, that the amount of tax the company has had to pay has risen. In addition to this, the retail sector has shown itself to be somewhat insecure.
The record result of growth does offset this amount of tax but it still should be kept in mind.
Recently the Euros commenced which is directly helping JD Sport’s prices. International competitions are quite frequent and can boost certain company’s revenue especially sport companies. A long with these positive aspects we still have to remember that growth might not as big next year due to the fact that there aren’t competitions as big as the World cup or the Euros.
JD Sport is a strong company with a market cap of 2.41 billion (even larger than Sport Direct’s) and impressive growth. These are very positive aspects and lead towards a buy but still there are some points which most likely need in depth research like the tax growth and the fact that retail is not always necessarily stable
17/06/2016 share price(at time of writing):1,239.00 (LON)