Its expansion continues, thanks in part to the acquisition of US company Hibbett last year. This deal enables the British retailer to generate 40% of its revenue across the Atlantic and to achieve a new revenue record in 2025.

However, free cash flow generation has stagnated for six years now, even though the group has significantly increased its scale over the period, with sales doubling in the meantime.

Already wary of the retail sector, investors have consequently punished the group, as evidenced by the sharp fall in its share price since the highs reached at the end of 2021.

It is particularly noteworthy that JD, despite its incomparably larger scale, is currently valued on the stock market at multiples significantly lower than those of Hibbett at the time of its acquisition.

In the same vein, Foot Locker—which was experiencing far more serious difficulties—was acquired by Dick's Sporting Goods at multiples comparable to those of Hibbett at the time.

Investors' skepticism is therefore very real. In addition to their natural distrust of the retail sector, it is also explained by the slowdown in the US economy and the difficulties faced by Nike and Adidas, exacerbated by the risk of tariffs.

Furthermore, JD Sports' net debt now stands at £3bn, triple its operating profit and four times its free cash flow. This is a change of style for the group, which had previously financed its meteoric expansion entirely from its own resources.

Engaged in a race to scale up in order to maintain its bargaining power with brands, JD is pursuing a kind of double-or-nothing strategy. This will keep the skeptics at bay, but the more optimistic will see it as a potential opportunity to invest against the tide.

See JD Sports Fashion Plc: Race to scale published in this column last year.