Jd Sports Plc Case Analysis

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Client specification This report is for individual or institutional investors who want to diversify their portfolio by investing in sportswear retail industry. Given the positive announcement of its high profit, it is suggested that JD sports Fashion Plc is undervalued and a final justification will be made in this report. The report will provide in-depth analysis of JD sports Plc. that includes the following content: • Analysis of sports clothing industry, including its main features, key market drivers and competition within industry. • Analysis of JD Sports Fashion Plc, including detailed business description, corporate strategy and SWOT analysis. • Equity valuation using DCF and comparable methods. The valuation is based on …show more content…

Company Overview JD Sports Fashion “Leading brands, exclusive styles, only at JD” • Founded in 1981, JD Sports Fashion is known as the leading specialists multiple retailers of branded sportswear, fashion wear and outdoor equipment. It is a subsidiary of Pentland Group, who owns 57.5% of its share. • JD Sports Fashion has four business areas, ie. Sport retail, fashion retail, outdoor retail and distributions businesses. • JD Sports Fashion operates mainly in the UK and Ireland. But it has business in France, Spain, Australia, New Zealand, the US, Canada and Hong Kong. It is headquartered in Bury, the UK and it has 10,508 employees in total. • JD has more than 800 retail stores, and it keeps increasing its presence in the European market with additional stores in France, Spain, The Netherlands and Germany. • In 2015, JD Sports Fashion Plc reported sales of £1.52 billion, a 14.4% increase from 2014. The profit before tax and exceptional items in the continuing businesses has gone up from £82.0 million to a record of £100 million. • After the announcement of higher- than-expected profit on 31st July 2015, the share price went from 727.5p to

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