JD Sports share price has risen by 36% over the past three months, yet the company continues to grapple with profit pressures amid reduced consumer spending and economic uncertainty.
The stock had fallen by 50% over five years to 88p per share before the recent recovery.
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Demand for premium-priced trainers, especially among younger consumers, has weakened due to inflation and rising youth unemployment in the UK.
Footwear accounts for 60% of JD Sports' sales. Higher living costs have pushed many shoppers to seek bargains, hitting the company's core product category hard.
Youth unemployment in the UK climbed to 16.4% between March and May 2026, adding financial strain on JD's primary customer base.
In the first quarter of 2026, JD Sports reported a 2.3% decline in like-for-like sales.
However, total revenue increased to £12.7 billion, driven by acquisitions in the US and France.
Management forecast pre-tax profits between £750 million and £850 million for the full year, down from £852 million the previous year.
Investment expert Mark Rogers noted that JD Sports shares have been undervalued, with a price-to-earnings ratio as low as six in recent months.
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"The shares are up 36% in the last three months and, while I'm still nursing a paper loss, I'm edging closer to breaking even," he said.
Rogers highlighted positive recent results, including revenue growth, increased free cash flow, and a higher dividend.
