JJB Sports decline slows
20/02/2012
While analysts said JJB still has a mountain to climb, with losses of £60 million expected for the year just completed, shares jumped 20%.
Last year, JJB was forced to secure £96.5 million in funds from major shareholders, as well as announce plans to close 43 unprofitable stores and place a further 46 on review in a bid to stave off administration.
As well as slowing the decline in like-for-like revenues - albeit against weak comparisons - the company has been encouraged by the profitability of those sales, with margins up 32.1% in the five weeks to January 29.
Chief executive Keith Jones said the retailer's performance was broadly in line with expectations despite challenging conditions.
“As we commented last month, weaker UK employment numbers and the ongoing credit squeeze on consumers create a tough environment,” said Mr Jones. “However, we are continuing to implement our turnaround aware of the importance of the key trading opportunities afforded by the European football championships and London Olympics.”
The group's turnaround scheme involves cutting costs and increasing sales through investing in staff training, upgrading some of its 160 viable stores and improving its ranges.
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