Thursday 10 April 2025 12:37 pm

FTSE 100: JD Sports back in fashion after share buyback and tariff U-turn

Retail Reporter

JD Sports is majority-owned by Pentland Group

JD Sports’ share price shot up more than 10 per cent this morning after the company announced a share buyback programme and US President Donald Trump announced a pause on tariffs.

The FTSE-100 firm was set to be one of the UK retailers most exposed to the tariffs, as its suppliers source the majority of their stock from Asian companies and around half of its sales are US-based.

A 90-day pause in the implementation of tariffs, as well as the announcement of a £100m share buyback programme and a positive fourth-quarter trading update on 9 April, allowed investors to breathe a sigh of relief.

“We believe JD is likely to continue outstripping its peers,” Peel Hunt analysts said.

“The fundamental strength of the JD franchise is the key factor here. Markets wax and wane but good companies come out of downturns stronger and we do not doubt JD will also do so,” they added.

Analysts had been souring somewhat on JD due to issues at key brand partner Nike, which has been struggling with a huge overhang of stock.

Nike has struggled with a post-pandemic shift away from athleisure, as well as competition from upstart trainer brands Hoka and On.

But Berenberg analysts said JD’s better-than-expected trading update on Wednesday was a positive sign.

The company told markets that revenue growth was 0.3 per cent in the fourth quarter, with organic revenue growth of 5.6 per cent, driven by a strong performance in Europe.

Peel Hunt analysts said: “In terms of the strength of the JD offering in an increasingly large customer base’s eyes, the improvements have continued and the lead in most aspects of retail execution have improved relative to the competition.”

“We see [2026] as a recovery year for sales… The prospect of total sales growth at around five per cent in an average year over the medium term looks attractive to us,” Berenberg analysts said.

“[In 2026], the full benefit of the £100m share buybacks planned for [2025] should come through,” they added.