JJB issues profit alert
11/09/2007
UK sports retail chain, JJB Sports, has warned that it is unlikely to achieve the profit goals it set for itself for the second half of the year after reporting disappointing results for the first half of 2007.
The company's finance director, Mike Greenwood, blamed a wide range of factors for the company's performance. He said sales for the first six months of 2007 were down compared to the same period last year because there was no major football tournament this summer.
He also said poor weather this summer in the UK and a series of interest-rate rises by the Bank of England, curtailing consumer spending, had not helped.
His report of a 4.4% drop in sales, compared to the same period in 2006, was also tacitly critical of JJB's recent move to set up in-store areas dedicated to major brands adidas and Nike. These had failed to bring in the extra revenue the retailer had hoped for, Mr Greenwood said.
He added that JJB was likely to try to extend the exclusive UK deals it has with other brands, including Patrick, Olympus and Le Coq Sportif.
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