JJB.L Regulatory News (JJB)

6 Jul 2005 10:30

JJB Sports PLC06 July 2005 JJB Sports Plc ("JJB") AGM Trading Statement JJB is holding its Annual General Meeting today and is taking this opportunityto provide an update on its current trading and property portfolio. Current Trading Total turnover of the Group, including health clubs, for the 22 weeks ended 3July 2005 was 8.9 per cent lower than the comparative period last year andincluded a fall in like-for-like turnover, in respect of operating units whichhave been open for over 52 weeks, of 9.4 per cent. However these figures havebeen affected by the very high levels of sales of football replica merchandisegenerated by the Euro 2004 competition during May and June 2004; if the sales ofall replica merchandise are taken out of the total turnover figure, then thefall becomes 6.1 per cent. The gross margin achieved in the retail stores wasmarginally lower than that earned in the comparative period last year, althoughthe blended gross margin (inclusive of gross profits from the health clubs) isslightly higher than the gross margin earned in the comparative period. JJB last issued a trading update on 26 May 2005 when it reported that its totalturnover for the 16 weeks ended 22 May 2005 had fallen by 7.5 per cent, whencompared to the same period last year, and that this included a fall inlike-for-like turnover of 7.7 per cent. JJB advised that it was finding tradingconditions to be difficult and competitive, although part of the fall inturnover levels had resulted from the strong comparative turnover figures fromfootball replica merchandise sales, which included turnover generated by theEuro 2004 tournament. Whilst trading conditions have continued to be difficult since 22 May, tradeduring more recent weeks has benefited from better weather; however comparativefigures arising from the Euro 2004 tournament increased in difficulty until 23June which was the anniversary of England being eliminated from the tournament.Total turnover for the 6 weeks ended 3 July 2005, (including that from thehealth clubs) fell by 11.7 per cent, when compared to the same period last year,and included a fall in like-for-like turnover of 13.0 per cent. If sales offootball replica merchandise are taken out of the total turnover figure, thenthe fall in turnover for the 6 weeks ended 3 July 2005 becomes 2.2 per cent. Membership levels at JJB's health clubs continue to be entirely satisfactory. At3 July 2005, JJB had 109,300 members in its 27 health clubs; the level ofmemberships at recently opened health clubs gives JJB confidence in its openingsstrategy which will include a total of 16 combined health club/superstores beingopened during the current accounting period. Property JJB's original store and combined health club/superstore opening programme forthe current accounting period is materially on target. In the 22 weeks ended 3July 2005, JJB has opened 6 combined health club/superstores and, in addition,has opened 7 stand-alone superstores (of which 3 are relocations of existingsuperstores) and 3 smaller Icon stores. During this period, 5 superstores(including the 3 relocations) and 8 smaller stores have been closed. The current forecast of total openings for the current accounting period is 16combined health club/superstores, 14 stand-alone superstores and 4 Icon stores.Icon stores are opened in former small high street stores which had traded asJJB and where the Company has been unsuccessful in disposing of the lease. Commenting today, David Whelan the retiring Chairman said:- "In the recent statements I made on 13 April 2005 and 26 May 2005, I referred tothe difficult retail trading conditions in the UK which I believe we are stillsuffering from. When compared to last year, sports retailers have beenparticularly badly hit during May and June because of the benefit derived fromthe sales of football replica merchandise during the Euro 2004 competition, butthese difficult comparative turnover periods are now behind us. In addition, andin common with all clothing retailers, I am hoping for better weather duringJuly and August than that of last summer. The back-to-school period, occurringat the start of the football season will be an important time for us, as willthe Christmas season. I do not anticipate any material improvement in retailtrading conditions before Spring 2006 which I hope will be followed by asuccessful sales campaign during the 2006 World Cup in May and June of thatyear. I believe that the strategies which we have put in place and which weredescribed in our Preliminary Results on 13 April 2005, will give us a betterproduct offering than we had in the last accounting period and should put us ina better position to meet the challenges set by the UK's current retailingconditions. I am confident that the growth of our combined health club/superstore units will be a major factor in the growth of JJB in future years." For further information please contact: JJB Sports plc 01942 221400 Tom KnightDavid Greenwood The Maitland Consultancy: 0207 7379 5151 Philip GawithCharlotte Barker This information is provided by RNS The company news service from the London Stock Exchange