JD Sports shares plummet as largest shareholder sells holdings worth 177m pounds

Shares in JD Sports plunged over 10 percent percent on Wednesday after majority shareholder Pentland reduced its stake in the fashion retailer worth 177 million pounds.

Pentland, which also owns sportswear brands such as Speedo and Berghaus, said it sold 24 million shares in JD Sports at 740p each.

“Pentland is committed to remaining a long-term majority shareholder in JD at the same time as growing our portfolio of sports, outdoor and fashion brands through organic investment and acquisitions,” Pentland chairman Stephen Rubin said in a statement.

Steve Miley, senior market analyst at asktraders.com told FashionUnited: “The market’s reaction has been acute to Pentaland’s offloading of 24 million shares, when the majority shareholder reduces their stake other shareholders sit up and listen.”

“However, you can’t ignore the fact that JD Sport has made impressive gains this year. Despite today’s sell off the stock is still up well over 100 percent across the year with a whopping 47 percent increase in H1 revenue. That is an impressive feat in normal terms but when you factor in that the challenges of the UK high street the gains made by JD Sport are even more commendable. This is a serious amount of profit taking but nothing more sinister. JD Sports still has its finger on the pulse.”

Images courtesy of JD Sports/Silverburn