2024 is proving to be a really depressing 12 months for FTSE 100 share JD Sport Vogue (LSE:JD.).

On 4 January, JD acquired issues off to a stinker with a shock revenue warning that despatched its share price tumbling. After a stable restoration, the retailer plunged once more from late September, partly because of fallout from October’s UK Finances.

And it’s struck a recent nadir for 2024 in the present day (21 November), with one other chilly buying and selling assertion sending its shares beneath 100p. At 96.5p, JD is down 15% in Thursday enterprise, and 40% for the 12 months to this point.

I’m questioning although, if this 12 months’s price collapse represents a sexy dip-buying alternative for long-term traders like me. Let’s have a look.

Forecasts minimize

Extra not too long ago, JD’s been battered by a poisonous mixture of poor climate, greater promotional exercise, and weak client spending forward of the US presidential election.

At group degree, like-for-like gross sales dropped 0.3% within the 13 weeks to 2 November, the enterprise mentioned.

Within the UK, corresponding revenues dropped 2.4% 12 months on 12 months, whereas within the US gross sales declined 1.5%. Mixed, these territories make up two-thirds of group gross sales.

Gross sales in Asia Pacific dropped by an even-sharper 3.8%. Nevertheless, energy in Europe offered some uncommon comfort, with revenues rising 3.5%.

JD’s weak third-quarter outcome means it now expects full-year earnings “at the lower end” of its steerage. Revenue earlier than tax and adjusted objects are tipped at £955m to £103.5m, although nonetheless up from £917.2m final 12 months.

Low-cost on paper

JD clearly has a problem to navigate what it describes as a “volatile trading environment.” Client spending stays weak in key markets. And it faces greater prices following the Finances, with its Nationwide Insurance coverage contributions set to rise, and modifications to the Minimal Wage pushing up employees bills.

Nevertheless, might all this be mirrored within the firm’s rock-bottom valuation? At in the present day’s price, the retailer trades on a ahead price-to-earnings (P/E) ratio of seven.4 occasions. That is far beneath the FTSE 100 common of 14.2 occasions.

In the meantime, JD shares commerce on a potential price-to-earnings development (PEG) ratio of 0.9. A sub-1 determine implies that share’s undervalued relative to anticipated earnings.

That mentioned, these figures are based mostly on predicted earnings development of 8% this 12 months. Metropolis forecasts might be slashing their development forecasts following in the present day’s replace.

A prime purchase?

On stability, I believe in the present day’s plunge beneath 100p might characterize a sexy degree for me to open a place.

It’s because I make investments for the long run. And over this timescale, issues proceed to look good in my view for JD and its share price.

Regardless of present turbulence, demand for athleisure merchandise is tipped to develop additional this decade in response to altering life. Grand View Analysis expects compound annual market development of 9.3% between now and 2030.

It’s a market that JD’s a frontrunner in because of its robust branding and tight working relationships with premium manufacturers like Nike and Adidas. And encouragingly, the FTSE agency continues quickly increasing to maximise this chance. It opened one other 79 shops throughout the globe within the third quarter.

I’ll be trying so as to add some shares to my portfolio within the coming days.