In a sense, little has changed lately JD Sport (LSE: JD). A series of profit warnings over the past few years have harmed the trust of investors and the price of Sports JD shares – above 2 GBP in 2021 – has fallen by up to 61 pence in the last 12 months. It is still selling for pennies, although similar to 1 GBP.

On the other hand, I think that things can change when it comes to the company’s quote.

Trade update over the past week has been quite well received, despite the fact that sales as a similar sales in three of the four regions of the company’s geographical trade, which together, together constituted 96% of retail sales.

It sounds strange. But I think that there may be a good reason – and one that can potentially aid in increasing the JD sports share price in the coming year.

Don’t get into tiny things! Look at a great vision …

Basically, JD Sports management has had a clear, elementary and coherent message over the past few years.

Something like this went. We will add loads of recent stores by building some and buying rivals. This will require a lot of investment outlays, eating our profitability and earlier a immense pile of cash. But it will give us a huge scale, increasing revenues. We can employ this as a basis for increasing profits in the long run, thanks to the benefits of the scale.

I LO, this vision can now occur.

Yes, revenues from the first half fell by 2.5% on A Just like similar base. But all these offers and acquisitions mean organic The raise in sales in the first half was 2.6%.

It may sound like a tiny beer, but consider it.

Revenues from the first half of the sale amounted to 5.9 billion GBP. Five years ago it was less than half of it, for 2.5 billion pounds. Meanwhile, in the last five years, the price of Sports Sports shares has dropped by 33%.

What about profits?

So far so good.

What about the cost of all this extension? I think that the company is now rewarding, at the same time finishing expenses. This should mean a change in revenues compared to five years ago – and I hope that now profits.

Paying attention to the uncertain potential impact of American tariffs, JD Sports said that this week he expected profit before taxation and adjusting positions throughout the year to be in line with market expectations of 852 million GBP.

Compare this with the company’s market capitalization in the amount of 4.7 billion GBP. On this basis, I see a company with a global basis, a immense customer base and a proven business model as poorly underrated.

I think that what maintained JD sports prices is skepticism that the immense expenses of recent years were worth it, as well as doubts as to the management’s ability to deliver after many profit warnings.

The latest update can aid ensure both points. This potentially establishes a scene for investors to re -assess the long -term growth history and the price of shares.

For now, I plan to suspend my JD sports actions.