Only a handful of FTSE 100 stocks have performed worse than JD Sports Fashion (LSE: JD) lately. The self-styled ‘King of Trainers’ has seen its share price collapse 57% over five years. Suddenly the JD share price has bounced 12% in the last month. Is this the start of a genuine recovery, or another false dawn?

As someone who holds the stock myself, I’ve seen plenty of short-lived rallies over the past few years. I’m not totally convinced this time is different.

Is JD Sports finally turning a corner?

It’s been a brutal few years for retailers. The cost-of-living squeeze hit spending hard, especially among younger consumers who drive demand for premium trainers and sportswear. JD’s adjusted pre-tax profits have been bumpy lately, as this list shows:

• 2026 – £852m
• 2025 – £923m
• 2024 – £917m
• 2023 – £991m
• 2022 – £941m

JD was also unlucky. It picked a bad moment to go big in the US, spending $1.1bn on Hibbett just as consumer confidence started to weaken. Even so, it remains a heavyweight. It runs more than 4,800 stores across 51 countries, with North America now accounting for roughly 40% of revenue. Trading has started to show some improvement, but there’s a long way to go.

2026 results on 7 May came in roughly as expected. Sales rose 11.7% to £12.7bn, but driven by acquisitions. Management also announced a £200m share buyback and lifted the dividend by 20%, helped by stronger cash generation. The trailing yield has crept up to 1.55%.

Does today’s valuation look too cheap to ignore?

At one point, JD’s price-to-earnings ratio dipped below seven. It’s crept up to 8.9 after the recent rally, but still looks low for a global retailer with this footprint and brand power.

Risks remain. Nobody yet knows what artificial intelligence could do to entry-level employment. But if younger workers struggle to find jobs, that could hit spending hard.

Will investors have to be patient?

News today (24 May) suggests we may be nearing some kind of peace deal in Iran, which may include the opening of the Strait of Hormuz. That would boost stocks across the board, including JD Sports. But we’ve had plenty of false dawns here as well, so I can’t take that as concrete.

JD’s board is shifting focus. Instead of relentless expansion, management now seems more interested in squeezing stronger returns from its existing store base and improving efficiency. That seems a sensible move to me, given its recent struggles.

I have no plans to sell my shares, but I’m not expecting a dramatic overnight recovery. After such a brutal collapse, I still believe that JD Sports will come good, but investors may need patience.

I do think the stock could prove a generational bargain at today’s low price, and is well worth considering. But we could suffer a few more false starts before it lives up to its potential.

Should you invest £5,000 in JD Sports Fashion right now?

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Harvey Jones owns shares in JD Sports Fashion.