• Investing
  • Stock
Round Table Thoughts
  • Economy
  • Editor’s Pick
Home Investing JD Sports shares collapsed in 2022: Is it a buy in 2023?
Investing

JD Sports shares collapsed in 2022: Is it a buy in 2023?

by December 21, 2022
by December 21, 2022 0 comment
Share
0
FacebookTwitterPinterestWhatsapp

JD Sports (LON: JD) share price had a tough performance in 2022 as the sports and fashion business struggled. The stock plunged by more than 43% in 2023, making it one of its worst years on record. So, will the shares rebound in 2023?

Sports apparel struggled in 2023

JD Sports share price has been under pressure in the past few months as the industry struggles. Indeed, sports apparel retailers like Adidas, Nike, and Anta Sports plunged by double-digits during the year. This decline happened despite the World Cup boost.

JD Sports faced numerous challenges. First, as inflation soared, most people continued to focus on consumer staples instead of discretionary products. As a result, its group results were not all that good. The most recent results shows that the company’s revenue in the first half rose to 4.4 billion pounds.

However, as costs rose, the firm’s profit before tax dropped to 383 million pounds. Earnings per share plunged to 5.23 pence, as I wrote in this article.

Still, there are several possible catalysts for the JD Sports share price for 2023. First, there are early indications that inflation in its key markets is easing. Data published last week showed that US and UK inflation pulled back slightly in November. Therefore, if the trend continues in 2023, the company will likely have a better year.

Second, the company is restructuring its operations. This week, it decided to offload 15 fashion brands to Frasers in a $58 million deal. The sale came as the CEO focuses on the company’s business expansion. International growth will likely help the company diversify its revenue stream.

Further, JD Sports has a strong balance sheet, with over 7.7 billion pounds worth of assets compared to over 5 billion worth of liabilities. Its working capital is worth over 1 billion pounds.

JD Sports share price forecast

JD chart by TradingView

The daily chart shows that the JD Sports stock price has been in a downward trend in the past few months. This sell-off saw the stock drop from a high of 235p in November 2021 to a low of 90p in 2022. It has recovered modestly in the past few weeks and managed to move to the 25-day and 50-day moving averages.

The stock remains slightly below the descending trendline shown in blue. It has also formed what looks like an inverted head and shoulders pattern. Therefore, the stock will likely have a bullish breakout as buyers target the key resistance point at 150p.

The post JD Sports shares collapsed in 2022: Is it a buy in 2023? appeared first on Invezz.

You Might Also Like
  • Amazon to lay off a lot more employees than initially planned
  • Verizon versus AT&T stock: analyst reveals the better pick for 2023
  • Delta Neutral Trading: What Not to Do and How to Fix It
  • 25+ US economy statistics: forecast, trends and facts for 2023
Share
0
FacebookTwitterPinterestWhatsapp

previous post
FedEx is ‘setting the bar pretty low’: Expert
next post
MULN stock price forecast: Is it safe to buy Mullen Automotive?

You may also like

Nasdaq 100 forecast: tech stocks collapse is worse than you...

December 30, 2022

What Are Covered Calls And How Do They Work?

May 18, 2024

Straddle vs. Strangle Options Strategy

February 8, 2023

Will Constellation Brands’ sell off continue as CEO insists it...

January 6, 2023

Everything You Need to Know About Options Assignment Risk

February 21, 2023

Musk says he won’t sell Tesla shares for two years:...

December 25, 2022

Wells Fargo had its profit cut in half: ‘I’m still...

January 13, 2023

Zscaler stock opened 10% down on Friday: how come?

December 2, 2022

Macy’s lowers its revenue guidance for the holiday quarter

January 8, 2023

The case for investing in REITs despite the Blackstone news

December 3, 2022

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Breakouts, Momentum & Moving Averages: 10 Must-See Stock Charts Right Now

      May 31, 2025
    • Leadership Rotation Could Confirm Corrective Phase

      May 30, 2025
    • Run Your Stock Portfolio Like a Pro Sports Team

      May 30, 2025
    • U.S. foreign tax bill sends jitters across Wall Street

      May 30, 2025
    • Amazon taps Xbox co-founder to lead new team developing ‘breakthrough’ consumer products

      May 30, 2025

    Popular Posts

    • 1

      Trump-era China sanctions ended by Biden may be...

      June 27, 2024 2,765 views
    • 2

      Walz’s honeymoon with China gets fresh scrutiny as...

      August 9, 2024 2,472 views
    • 3

      Biden appointee played key role in recruiting Chinese...

      June 25, 2024 2,451 views
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful...

      July 10, 2024 2,432 views
    • 5

      Harris VP pick spent years promoting research facility...

      August 29, 2024 2,308 views

    Categories

    • Economy (7,009)
    • Editor's Pick (2,106)
    • Investing (538)
    • Stock (2,581)

    Popular Posts

    • 1

      Trump-era China sanctions ended by Biden may be revived under new House GOP bill

      June 27, 2024
    • 2

      Walz’s honeymoon with China gets fresh scrutiny as Harris camp blasts ‘lying’ critics

      August 9, 2024
    • 3

      Biden appointee played key role in recruiting Chinese businesses to Delaware: ‘Longtime friends’

      June 25, 2024
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful of Chinese spy threats

      July 10, 2024
    • 5

      Harris VP pick spent years promoting research facility that collaborated with ‘Chinese military company’

      August 29, 2024

    Latest News

    • Breakouts, Momentum & Moving Averages: 10 Must-See Stock Charts Right...

      May 31, 2025
    • Leadership Rotation Could Confirm Corrective Phase

      May 30, 2025
    • Run Your Stock Portfolio Like a Pro Sports Team

      May 30, 2025

    Categories

    • Economy (7,009)
    • Editor's Pick (2,106)
    • Investing (538)
    • Stock (2,581)

    Disclaimer: RoundTableThoughts.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2024 RoundTableThoughts.com. All Rights Reserved.

    Round Table Thoughts
    • Investing
    • Stock
    Round Table Thoughts
    • Economy
    • Editor’s Pick

    Read alsox

    XRP price spikes 6% as crypto...

    December 27, 2022

    Oak Street Health stock just rallied...

    January 10, 2023

    Is it safe to buy Lazard...

    January 2, 2023
    Sign In

    Keep me signed in until I sign out

    Forgot your password?

    Password Recovery

    A new password will be emailed to you.

    Have received a new password? Login here