Despite its name, FTSE 100 retailer JD Sports Fashion (LSE:JD.) has been out of fashion with investors for a while now. The last time the sports and leisurewear group’s share price was above three figures was in October 2025. It was trading above 200p in January 2022.

And yet revenue during the 52 weeks ended 31 January (FY26) was £4.1bn, 48% higher than in FY22. Operating profit was £145m (20%) more. Does this mean the stock’s a bargain?

Needless expansion?

Over the past few years, JD Sports has been on a buying spree. It currently (4 November) owns over 4,800 stores in 51 countries. At the end of January 2022, it had 3,402 in 32 territories.

And while this has made the group bigger, it hasn’t helped its profitability on a per share basis. Adjusted earnings per share (EPS) was 12.84p in FY22, compared to 11.71p for FY26.

In other words, it would have been better for shareholders if the group hadn’t bothered with any of its acquisitions. Life would have been easier for the management team too. Just imagine how much time’s been spent dealing with all the complicated legal and operational issues associated with buying companies.

Despite this, the group remains committed to its expansion plans. In September, it announced a new partnership with Axo, described as Mexico’s “leading omni-channel retail distributor”. Starting in 2027, Axo will operate more than 140 stores in the country under the JD Sports banner.

A difficult backdrop

However, conditions in the athleisure market are tough at the moment. During the 26 weeks to 1 August, JD Sports reported a 0.7% drop in sales and a 20.5% fall in operating profit compared to the same period a year earlier. Its gross profit margin was also down slightly.

The group blamed “consumer cost-of-living pressures, footwear product cycle headwinds and a highly promotional market”.

What about the future?

For FY27, the group expects to deliver profit before tax and adjusting items of £700m-£800m, a big difference between the top and bottom of this estimate.

But if it can get close to £800m and, importantly, show that it’s growing again — even at a modest rate — I’m confident that investors will warm to the stock once again. In these circumstances, I think the share price would break through the 100p barrier and push towards the 12-month target of 150p set by Berenberg in September.

To boost its financial performance, the group’s spending heavily on AI. This should improve stock management, procurement, and the customer experience. It’s also investing in refreshing its stores, and promoting its JD Status loyalty programme.

Admittedly, it’s frustrating being a shareholder in JD Sports. However, I still think the stock could be one for patient investors to consider. Despite its lack of growth, it’s expecting to generate free cash from of at least £1.4bn from FY26 to FY28. Excluding leases, the group has no debt.

Indeed, there’s some evidence to suggest that investors recognise that the group’s shares have been oversold. Since the end of September, the share price has risen 16%. Even so, the stock’s still trading at just eight times FY26 earnings. Describing the stock as a bargain might be a little over the top but it’s certainly cheap.

However, it’s not the only interesting opportunity that’s caught my attention recently…

What growth stock do we like better than JD Sports Fashion right now?

One of our Share Advisor analysts has just released a brand new stock report that we think is a must-read for any investor looking to try and generate potential growth.

And the best bit is that you can see it for yourself, right now, absolutely free of charge!

No jargon. No hard sell. Just a clear look at a growth share idea we think is worth your time.

James Beard owns shares in JD Sports Fashion plc.