preview

Essay on Financial Analysis of Jd Sports

Better Essays

Executive Summary Faced with the adverse economic environment, the sports retail industry is fiercely competitive. All the companies involved take various measures to maintain competitive advantage and improve profitability. When it comes to whether a corporation is worth to invest, financial analysis is greatly needed, since it can provide sufficient information to investors from different viewpoints. After in-depth financial analysis of JD Sports Fashion (JD), one of the leading specialised sports retailers in UK, it can be concluded that JD is worthwhile for a pension fund to invest. Contents Introduction 3 Company Profile 3 PEST Analysis 5 SWOT …show more content…

Another sector rival, JJB, mainly focused on professional sportswear, experienced enormous losses due to squeezed customer spending and other multiple economic pressures (Davey, 2009). Unlike successive growth of net profits of its major competitors, in 2011 JJB tripled the losses of previous year. The declined sales during Christmas promotion periods account for lagging behind the sector rivals (Wilson, 2009). 3. PEST Analysis |Political |Economic | |JD Sports lost stocks worth almost 700,000 pounds in the riots |Continuous adverse economic environment, shrank consumptions expenditures | |happened in 2011 (Marian, 2011) |on non-essential items | | |Increased VAT rate posts more pressure to the retailer sector | | |Inflationary pressures | | |Increased youth unemployment rates |

Get Access