JJB.L Regulatory News (JJB)

14 Jan 2008 07:01

JJB Sports PLC14 January 2008 JJB Sports plc Trading Statement JJB Sports plc ("JJB") is today publishing its trading statement which includesinformation on its performance over the Christmas period. Current trading Total revenue for the 23 weeks to 6 January 2008, including that from bothretail stores and health clubs, was 2.2 per cent higher than for the same periodlast year and includes a like-for-like increase in revenue (on operating unitswhich have been trading for over 52 weeks) also of 2.2 per cent. For JJB'sretail stores only (excluding health clubs), the increase in total revenue forthat period was 1.2 per cent with a like-for-like increase of 1.9% across 384stores. The increase in total revenue for the 23 week period has been accompanied by anincrease in the combined gross margin of approximately 200 basis points. Total revenue for the Christmas period of 6 weeks to 6 January 2008 shows anincrease of 2.5 per cent, which includes a similar increase in like-for-likerevenue, but was achieved at the cost of a combined gross margin which wasapproximately 400 basis points lower than that achieved in the same six weekperiod last year. The decrease in combined gross margin results mostly from the decision to cleara build up of non-current products in the retail stores and only partly from thecurrent economic landscape. JJB is determined to start its new financial yearfrom February 2008 with a much fresher stock package on which stronger marginscan be achieved. JJB's health clubs, with their strong value-for-money offering, have seencontinued positive revenue and gross margins, and have only been slightlyaffected by the current economic situation. Outcome for the second half JJB reiterated guidance on 29 November 2007 that trading results in the secondhalf would be similar to that achieved in the comparative period last year. JJBis continuing its aggressive clearance of non-current stocks over the remaining3 weeks of the current accounting period and this is expected to further impactthe gross margin. The Board therefore expects that this is likely to result inthe profit before tax and exceptional operating items for the second half of thecurrent accounting period to be slightly below the £27.4 million achieved in thesecond half last year. Outlook for 2008 The Board believes that JJB will be in a stronger position in 2008 as regardsits product levels and ranges and will seek to implement a store refurbishmentplan across selected stores to take advantage of the successful new in-storeformat as shown in the recent refurbishment of its Trafford Centre store. TheBoard believes that the company's future trading position will be furtherstrengthened following the recent introduction of a significant retail staffincentivisation bonus together with the opening of its Training Academy. JJBwill also continue with the extensive roll-out programme of its combined healthclubs/superstores. However, the Board of JJB remains cautious about the outlook for 2008 in view ofthe escalating pressure on consumers' finances. JJB will make its Preliminary Results announcement for the 52 weeks ending 27January 2008 on 16 April 2008. Roger Lane-Smith, Non-executive Chairman of JJB, today commented:-"I am confident that under the direction of CEO Chris Ronnie, the wholeExecutive team is taking all the right actions to reinvigorate this business." For further information, please contact: Chris RonnieDavid Greenwood 01942 221400JJB Sports plc Lydia PretzlikCharlotte Walsh 020 7379 5151Maitland A copy of this press release can also be viewed on the JJB Sports plc corporatewebsite, www.jjbcorporate.co.uk This information is provided by RNS The company news service from the London Stock Exchange