Is share price rally sustainable for sports retailer? – The Armchair Trader
JD Sports LON:JD. shares were trading up on Monday, nearly 10%, reversing a trend which saw them give up over 20% in the last month. This followed a cautious upgrade from Deutsche Bank, which removed its sell rating on the stock.
Nike’s recent struggles are creating uncertainty for JD Sports. JD Sports relies on Nike’s strength since its products typically have higher price tags than other brands, helping boost profits.
More margin volatility is inevitable as other brands gain more shelf space in stores. These brands usually have shorter product life cycles, leading to increased promotional activity.
JD Sports faces less margin volatility in the UK due to higher apparel sales. In Europe and the US, where apparel is a smaller share…
