An action jumped 8,000% in twenty years

The title JD Sports has grown exponentially since the end of 1999. The loyalty of this retailer to major brands convinces fans of fashion sports.

While it was trading at 7.375 pence at the end of 1999, the action JD Sports Fashion

surpbaded 597 pence on Wednesday on the London Stock Exchange. In the meantime, this title has thus increased by 8,000%, which is the best performance of the UK market, according to data from the Bloomberg financial news agency.

JD Sports, which has a subsidiary in Antwerp and around 15 stores in Belgium, has built its success on an offer of ranges of exclusive brand items such as Adidas and Nike, which has allowed it to retain a clientele attracted by sports fashion.

During its fiscal year ended February 2, 2019, the British group posted sales of 4.7 billion pounds (5.4 billion euros), representing growth of nearly 50% compared to the previous year. In 2000, his sales were just over 170 million pounds …

The recent strong growth of the brand is due to its development at the international level. The British group recently acquired Finish Line stores in the United States. JD Sports is also present in France, Germany, Italy, Spain and the Netherlands, among others. It has also taken a new step by opening its first stores in Australia last year.

But this high-speed development does not prevent a organic growth. On a like-for-like basis, the British group estimates that its sales increased by more than 6% over the last financial year, despite the difficult conditions faced by the retail sector in the UK market.

In this regard, JD Sports warns in its annual report that Brexit could affect it. "The majority of the group's retail stores across Europe are sourced from the stock of the group's largest warehouse in Rochdale", he says. "Therefore, the current business plan requires access to these European markets and the maintenance of a series of free trade agreements at levels at least equivalent to current levels." The group also indicates that Brexit has already had a negative impact on prices to which he buys goods. In other words, the decline in the pound sterling weighed on its costs.

JD Sports distributes a very small dividend 1.71 pence, giving the stock a dividend yield of just 0.29%. However, it has a margin since the distribution rate is just over 6%. But the JD Sports Fashion title remains above all a growth share, with all the risks badociated with the retail sector, namely the competition of online sales, changes in consumer behavior, international business relations, etc.