The bad news about economic volatility is it impacts a firm’s earnings, outlook, and investor sentiment. On the flip side, this same volatility throws up the opportunity to snap up some great value shares.

One pick which caught my eye recently is a stock I already own, JD Sports Fashion (LSE: JD.). I’m thinking about buying more shares.

Here’s why!

Tough times

JD Sports Fashion is one of the largest sportswear and leisurewear retailers in the UK. Plus, it continues to grow internationally. In fact, it now operates across 38 countries.

The shares have fallen 2% over a 12-month period from 139p at this time last year, to current levels of 135p. However, a poor Christmas sales period, and a profit warning which followed, meant the shares dropped 38% from 173p before Christmas 2023, to 104p near the end of January 2024.

Challenges and risks ahead

Consumers continue to battle with higher inflation, interest rates, and essential energy bills. This has dented JD Sports Fashion’s performance and outlook. These issues aren’t behind us just yet either. There could be some choppy waters ahead, which I’ll keep an eye on.

Another issue I’ll keep a close eye on is the firm’s largest partner, Nike, which has been a money spinner for years. The US sportswear behemoth has had its own issues recently, and also downgraded sales forecasts.

Finally, with such a large physical presence, the threat from online-only competitors is something I can’t ignore. These other firms have lower overheads, which could help them garner market share in an ever-increasing digital world. For example, JD Sports Fashion makes nearly 75% of its money from physical sales in store.

Why I’m tempted to buy more shares

I do think the future is bright for JD Sports Fashion. This lower entry point is an exciting opportunity for me.

The business is banking on rebounding from economic volatility. Once that dissipates, it’s in a good place to benefit. For the year ended February 2025, it’s forecasting £955m-£1.035bn worth of profit. For context, this is more than double 2022 figures of £421m. However, I do understand that forecasts don’t always come to fruition.

Next, I’m excited by its continued expansion, and namely its continued assault on the US market. It increased exposure to this lucrative segment through the acquisition of Hibbett Inc, an Alabama-based sportswear giant. Plus, JD Sports continues to target other markets such as the Middle East, and Far East too. Success here could take the business to new heights.

Finally, the shares look very attractive on a price-to-earnings ratio of just 10. This is close to half the level of approximately three years ago. Furthermore, a dividend yield of less than 1% sweetens the investment case. Plus, I can see this growing in the future. However, I do understand that dividends are never guaranteed.

When I have some cash to invest, I’ll buy some more JD Sports Fashion shares for my holdings.