This sports wear fashion retailer looks like it could be set for a recovery having had a solid Christmas and maintained trading strength through into the new Year.

Its long term chart is showing signs of an uptrend channel developing and the sp as crossed the 10 and 30 day moving averages..



Trader Chart



Last Trading Statements..

Xmas Statement

http://www.investegate.co.uk/Article.aspx?id=200901090700073733L

January Trading Statement

http://www.investegate.co.uk/Article.aspx?id=200902040700127485M

Fundies..

INVESTMENT RATIOS
2008 (A) 2009 (E) 2010 (E)
EBITDA 55.35m 63.30m 65.30m
EBIT 43.13m 47.48m 48.90m
Dividend Yield 2.68% 3.63% 3.99%
Dividend Cover 9.07x 7.17x 6.88x
PER 4.12x 3.85x 3.64x
PEG 0.06f 0.55f 0.66f
Net Asset Value PS 83.41p p p

Trades on a forward P/E of less than 4 for 2010.

Nothings guranteed but this looks like a forerunner in green shoot recovery for fashion sports clothing retail.

Beta 0.2

DYOR

Sprint after record-breaking JD Sports
By Lee Wild | Wed, 17th September 2014 - 12:22
Sprint after record-breaking JD SportsJD Sports Fashion (JD.) had a fantastic 2013, and after a pause for breath this year, has unveiled a record set of first half numbers. Profit actually doubled and City number crunchers have raised forecasts for the full-year. The second half will be harder, but the sports retailer's shares look to have legs.
Sales for the 26 weeks ended 2 August surged by 27% to £721.5 million and costs as a percentage of revenue fell sharply. Strip out £3.5 million of one-off items, mainly provisions for onerous property leases, and operating profit rocketed from £10.4 million to £21 million. Investec Securities had pencilled in just £15 million.

An "exceptional" performance at the Sports division was the driving force. There, business was up across Europe and profit grew by a third to £34.8 million. Trainers sold particularly well.

Crucially, losses at the Outdoor unit - Blacks and Millets - narrowed significantly from £8.9 million to £5.6 million and are expected to shrink further during the remainder of the year. Fashion had another shocker, though, with losses widening to £8.2 million from £6.8 million. However, the second quarter showed signs of improvement and the second half is typically busier. Underperforming stores are being shut and rents reduced, too.

Admittedly, comparisons get tougher as the year progresses - like-for-like sales at the core UK and Ireland Sports operation jumped by 11.2% in the second half of last year.

That's why Investec capped its upgrade for full-year adjusted pre-tax profit at 3%. The broker now expects JD to make £83.5 million in the year to January, giving adjusted earnings per share (EPS) of 32p, up 9%. It's looking for 11% growth the following year.

Of course, JD has work to do turning round both the Outdoor and Fashion operations, but both are achievable. Fix them, and Investec points out that EPS would be enhanced by 18%. True, that's unlikely short-term, but it gives an idea of the potential.

Strip out forecast year-end net cash of £61.1 million, worth 31p per share, and JD Sports shares (currently at 433p) trade on just 12.6 times forward earnings, dropping to less than 11 for 2016. JD shares have consistently found strong support at the 200-day moving average (currently 396p), but if management keep this up, they won't need it.

JD. JD SPORTS FASHION on a P/E of just 4.91 way way too cheap. Uprating must come over the next year given the excelence of the the retail offering.

JD SPORTS FASHION SHARE PRICE INFORMATION

Name JD Sports Fashion Epic JD.
Sector General Retailers ISIN GB00BMNQZP86
Activites JD Sports Fashion plc's (formerly John David Sports plc) principal activity is the retail and distribution of sport and athletic inspired fashion, footwear, apparel and accessories. The Group's principal fascias are: JD Sports, Size?, Scotts, Bank and Chausport. Index FTSE 250

Latest Share Price (p) 430.55 Net Gearing (%) 41.69
Market Cap (£m) 197.32 Gross Gearing (%) 54.50
Shares in issue (m) 48.66 Debt Ratio 13.09
P/E Ratio 4.91 Debt-to-Equity Ratio 0.13
Divs per share (p) 27.10 Assets / Equity Ratio 2.20
Dividend Yield (%) 6.68 Price to book value 0.72
Dividend Cover 3.03 ROCE 0.11
Earning per share (p) 82.52 EPS Growth (%) 3.53
52-week high / low (p) 1,825.00 / 360.00 DPS Growth (%) 3.04

JD SPORTS FASHION BROKER VIEWS

Date Broker Recommendation Price Old target price New target price Notes
17 Sep Investec Buy 430.55 475.00 475.00 Reiterates
17 Sep N+1 Singer Buy 430.55 500.00 500.00 Reiterates
17 Sep Cantor Fitzgerald Buy 430.55 500.00 500.00 Reiterates

JD. Citywire Comment...


JD Sports doubles profits
Retailer JD Sports (JD) has exceeded expectations with a 100% increase in first-half profits before tax.

Investec analyst Kate Calvert retained a ‘buy’ recommendation and a target price of 475p following its H1 results. Shares were trading at 408p yesterday.

‘Good numbers were expected post its Q1 trading update, but a 100% increase in H1 profits before tax results has exceeded expectations,’ she said.

‘This has been driven by sport, which has had another strong footwear performance, and progress in Europe. Valuation on our upgraded full year forecast – 3% increase – looks undemanding given the untapped UK growth potential, building momentum in its profitable European business as scale increases, and the ability to reduce £15 million of outdoor and fashion forecast losses over time.’

19 Sep 2014 JD Sports Fashion... JD. Cantor Fitzgerald Buy 0.00 433.30 500.00 500.00 Reiterates

SP TARGET 500p