Latest news with #JD Sports
Yahoo
24-05-2025
- Business
- Yahoo
Is Weakness In JD Sports Fashion Plc (LON:JD.) Stock A Sign That The Market Could be Wrong Given Its Strong Financial Prospects?
It is hard to get excited after looking at JD Sports Fashion's (LON:JD.) recent performance, when its stock has declined 11% over the past week. But if you pay close attention, you might gather that its strong financials could mean that the stock could potentially see an increase in value in the long-term, given how markets usually reward companies with good financial health. Specifically, we decided to study JD Sports Fashion's ROE in this article. Return on equity or ROE is a key measure used to assess how efficiently a company's management is utilizing the company's capital. In short, ROE shows the profit each dollar generates with respect to its shareholder investments. Our free stock report includes 1 warning sign investors should be aware of before investing in JD Sports Fashion. Read for free now. ROE can be calculated by using the formula: Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity So, based on the above formula, the ROE for JD Sports Fashion is: 16% = UK£540m ÷ UK£3.4b (Based on the trailing twelve months to February 2025). The 'return' is the amount earned after tax over the last twelve months. That means that for every £1 worth of shareholders' equity, the company generated £0.16 in profit. See our latest analysis for JD Sports Fashion We have already established that ROE serves as an efficient profit-generating gauge for a company's future earnings. Based on how much of its profits the company chooses to reinvest or "retain", we are then able to evaluate a company's future ability to generate profits. Generally speaking, other things being equal, firms with a high return on equity and profit retention, have a higher growth rate than firms that don't share these attributes. At first glance, JD Sports Fashion seems to have a decent ROE. Further, the company's ROE compares quite favorably to the industry average of 8.2%. This probably laid the ground for JD Sports Fashion's moderate 12% net income growth seen over the past five years. We then compared JD Sports Fashion's net income growth with the industry and we're pleased to see that the company's growth figure is higher when compared with the industry which has a growth rate of 8.2% in the same 5-year period. Earnings growth is an important metric to consider when valuing a stock. It's important for an investor to know whether the market has priced in the company's expected earnings growth (or decline). By doing so, they will have an idea if the stock is headed into clear blue waters or if swampy waters await. Has the market priced in the future outlook for JD.? You can find out in our latest intrinsic value infographic research report. JD Sports Fashion has a low three-year median payout ratio of 12%, meaning that the company retains the remaining 88% of its profits. This suggests that the management is reinvesting most of the profits to grow the business. Moreover, JD Sports Fashion is determined to keep sharing its profits with shareholders which we infer from its long history of paying a dividend for at least ten years. Our latest analyst data shows that the future payout ratio of the company is expected to drop to 8.5% over the next three years. Regardless, the ROE is not expected to change much for the company despite the lower expected payout ratio. In total, we are pretty happy with JD Sports Fashion's performance. In particular, it's great to see that the company is investing heavily into its business and along with a high rate of return, that has resulted in a sizeable growth in its earnings. The latest industry analyst forecasts show that the company is expected to maintain its current growth rate. To know more about the company's future earnings growth forecasts take a look at this free report on analyst forecasts for the company to find out more. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Globe and Mail
21-05-2025
- Business
- Globe and Mail
Market Analysis: May 21st, 2025
Global Markets Canadian Markets: Canada's TSX declined, pulling back from record highs , as investors booked profits to mitigate risks amid renewed trade tensions and concerns about slowing global growth. As the markets head into the typically quieter summer months, lower trading volumes may increase volatility. In addition, growing pessimism among economists — with several now forecasting that Canada is heading into a recession — has weighed on investor sentiment. Weakening consumer spending, a cooling housing market, and persistent inflationary pressures are contributing to this negative outlook which are reflecting the current aversion to risk, the despite strength from rising oil and gold. US Markets: U.S. equity markets traded lower, as Treasury yields surged, reflecting heightened fiscal concerns. Investors are watching Washington's political gridlock, particularly with the ongoing standoff over President Donald Trump's proposed tax-cut legislation, which is reigniting debates about deficit spending. Markets also are addressing the re-escalation in tensions between the U.S. and China over the semiconductor trade, further stoking fears of a renewed 'chip war' that could hurt technology supply chains and global growth. European Markets: European stock markets traded the day mixed, while some regional indices managed modest gains, as the broader market was dragged down by sharp declines in key stocks like JD Sports and Julius Baer, both of which posted disappointing updates. The performance of these heavyweight stocks overshadowed otherwise stable earnings and economic data across the eurozone. UK equities rose slightly, despite an unexpected move higher in inflation. Consumer prices in the UK climbed more sharply than forecast in April, driven by a surge in energy and transport costs. The headline inflation rate surpassed 3%, raising fresh concerns for the Bank of England as it considers its next steps on interest rates. The persistence of high inflation, even as economic growth remains modest, complicates the central bank's efforts to bring price pressures under control without stifling demand. Stock News Alphabet Inc Volvo Cars has become the lead development partner for Google's Android Automotive software. This deeper collaboration will allow Volvo customers earlier access to new features, giving it a competitive edge in user experience and software integration. Apple Inc Epic Games' Fortnite has returned to Apple's App Store in the U.S. after nearly five years, following a court ruling that found Apple violated antitrust regulations. This marks a significant win for Epic Games in its legal battle with Apple over app payment practices. Brookfield Asset Management Spain's Bankinter has submitted a binding bid for Livensa, Brookfield's student housing platform, valued at around €1.2 billion. CPPIB and KKR are also reported to be interested. Brookfield has not commented publicly on the deal. Canada's Big Banks Four of the six largest Canadian banks are expected to have each set aside over C$1 billion in Q2 for loan loss provisions, preparing for potential defaults amid economic uncertainty and trade-related risks. Comcast Corp & Walt Disney Co Comcast is set to open its $7 billion 'Epic Universe' theme park in Central Florida, expanding Universal Orlando Resort. This major addition challenges Disney World's dominance and includes five themed worlds based on well-known franchises. ConocoPhillips Guangdong Pearl River Investment Management Group signed a 15-year LNG supply agreement with ConocoPhillips. Although volumes weren't disclosed, the deal supports China's growing LNG infrastructure and energy needs. DXC Technology Co JPMorgan cut its price target to $18 from $22, citing lower free cash flow expectations for FY27 and FY28. Keysight Technologies Keysight exceeded Wall Street estimates for Q2 revenue and profit, driven by strong sales in its communications segment. Shares rose 5% after-hours, and the company reported EPS of $1.70 vs. an expected $1.65. Kraft Heinz Co Kraft is exploring strategic deals amid falling demand for its premium snack and meal products. Two Berkshire Hathaway executives are exiting the board as Buffett's firm withdraws board participation. Kraft has also lowered its annual sales and profit forecasts. Lowe's Companies Inc Lowe's reported a smaller-than-expected 1.7% decline in same-store sales and maintained its 2025 outlook. Despite weak big-ticket sales due to higher interest rates, maintenance spending helped cushion the decline. Medtronic PLC Medtronic plans to spin off its diabetes business into a separate company within 18 months. The division, with $2.5 billion in annual sales, will be based in California and led by current diabetes head Que Dallara. Myriad Genetics Inc Scotiabank downgraded the stock to 'Sector Perform' from 'Sector Outperform' and cut the price target to $6 from $20, citing a need for clearer strategic direction under new leadership. Nvidia Corp CEO Jensen Huang criticized U.S. export controls on AI chips to China as a failure, saying they have cost American firms billions and were based on flawed assumptions. He supports regulatory adjustments by the Trump administration. Palo Alto Networks Palo Alto raised its Q4 revenue forecast, driven by increased demand for cybersecurity solutions amid rising digital threats. Analysts see the sector as resilient and poised to benefit from increased AI adoption. Target Corp Target slashed its annual forecast after reporting a sharp drop in same-store sales. Executives cited weak consumer confidence and trade uncertainty, including potential tariff impacts from U.S.-China tensions. Tesla Inc Tesla will begin testing its robotaxi fleet in Austin, TX by June, starting with 10 vehicles and expanding to 1,000. The rollout comes amid regulatory scrutiny and declining global sales, as well as growing backlash toward Elon Musk's political ties. Viking Holdings Ltd JPMorgan raised its price target to $61 from $58 after Viking beat Q1 adjusted EBITDA estimates. Wolfspeed Inc Wolfspeed is reportedly preparing for Chapter 11 bankruptcy due to heavy debt and sluggish demand in industrial and auto sectors. Shares fell 57% in extended trading. The firm is seeking creditor support after failed restructuring talks.
The Independent
21-05-2025
- Business
- The Independent
JD Sports reveals weaker profits as tariffs set to lift US prices
JD Sports has reported a drop in profits for the past year as it warned that US customers could be facing higher prices over changes to tariff rules. The company said there is market 'volatility' in the face of the tariff regime launched by US President Donald Trump last month. It said the plans, which include a blanket 10% tariff on all US imports, could mean the 'cost of goods and services for US customers may rise to some degree', with this potential weighing on demand. It came as the retailer said overall sales are being affected by 'slower' conditions in many markets. JD Sports reported that organic sales grew by 3.1% in the quarter to May 1 as new openings offset a 2% decline in like-for-like sales. In North America, organic sales were 1.4% higher but the company saw like-for-like sales fall 5.5% due to pressure on consumer confidence. Meanwhile, organic sales grew by 6.5% in Europe as the retailer said good weather conditions helped to drive sales in the UK. The group also reported that adjusted pre-tax profits dropped by 4% to £923 million for the year to February, largely due to investment in infrastructure and security. Chief executive Regis Schultz said: 'Overall trading in the first quarter of the new financial year has been in line with our expectations in a volatile market. 'Despite this volatility, and uncertainty surrounding the impact of US tariff changes, we look forward into the medium term with confidence that we can continue to outperform the market, improve our profit margin and create significant value for our shareholders.'
Reuters
21-05-2025
- Automotive
- Reuters
European stocks ease from 2-month highs as Julius Baer slides, US talks in focus
May 21 (Reuters) - European stocks retreated from two-month peaks on Wednesday, weighed down by a drop in Julius Baer shares after the Swiss bank revealed credit portfolio charges, while investors kept an eye on U.S. trade developments and tax bill debate. The pan-European STOXX 600 (.STOXX), opens new tab was down 0.2%, as of 0721 GMT, led by auto (.SXAP), opens new tab and retail (.SXRP), opens new tab stocks. Shares of Julius Baer (BAER.S), opens new tab slid 5.6% after the lender reported a 130 million Swiss franc ($156.36 million) charge from a credit portfolio review and announced the replacement of its chief risk officer. JD Sports (JD.L), opens new tab slumped 8.4% to the bottom of the STOXX 600 after the British sportswear retailer posted a 2% fall in first-quarter underlying sales and warned that higher prices in its key U.S. market could hit customer demand. Further spooking investors, data showed British inflation surged by more than expected in April, including in key areas closely watched by the Bank of England, complicating its path toward gradual interest rate cuts. Investors are worried about the lack of progress on trade deals as the clock ticks down to the end of U.S. President Donald Trump's 90-day tariff respites, as well as a sweeping tax bill that has raised concerns about the fiscal health. German chipmaker Infineon ( opens new tab rose 1.7% after it said it would work with Nvidia (NVDA.O), opens new tab to develop chips for new power delivery systems inside artificial intelligence data centers. Marks & Spencer (MKS.L), opens new tab slipped 3.3% after the British retailer said a "highly sophisticated cyber" attack would cost it about 300 million pounds ($403 million) in operating profit.
