JJB: Christmas trading improved
Struggling UK sportswear retailer JJB Sports said trading improved in its second half and it achieved a Christmas outcome in line with expectations that were revised down after an October profit warning. The retailer said on 5 January 2012 that sales at stores open over a year increased 5% in the four weeks to 26 December 2011, while cash gross margin rose 6%.
The performance meant like-for-like sales for the 47 weeks to 26 December fell 13.5%, with cash margin down 20.8%.
In October the firm issued the latest in a long line of profit alerts, warning on the full-year outcome alongside a wider first-half loss. At the same time JJB said its net funds had fallen to £17 million even though it had raised £97 million over the past year to fund a turnaround plan.
“Looking ahead, the ongoing credit squeeze on consumers and weaker UK employment numbers creates a tough environment. We continue to implement our turnaround aware of the importance of the periods of the January sales, European football championships and London Olympics,” said chief executive Keith Jones.
