JJB.L Regulatory News (JJB)

26 May 2005 14:44

JJB Sports PLC26 May 2005 JJB Sports plc ("JJB") Trading update In the context of the difficult retail trading environment, JJB is updating themarket on trading for the 16 weeks ended 22 May 2005. Total turnover fell by 7.5 per cent as compared with the same period last year,which included a fall in like-for-like turnover of 7.7 per cent. The Group'sgross margin for the 16 weeks ended 22 May 2005 showed a slight improvement onthe same period last year. At the time of the publication of its Preliminary Results for the 53 weeks ended30 January 2005, on 13 April 2005, JJB reported that it was experiencingdifficult trading conditions. It advised that its total turnover for the 10weeks ended 10 April 2005 had fallen by 1.3 per cent when compared to the sameperiod last year, but warned that this comparison was flattered by the earlyoccurrence of Easter in 2005 compared to 2004. JJB has found that trading conditions have continued to deteriorate since 10April across all product groups. In addition, trading during May and June lastyear benefited from successful turnover levels of football replica kit in thebuild-up to the Euro 2004 competition. JJB does anticipate a turnaround inturnover of football replica kit in 2006 as a result of the FIFA World Cup. Given that the store and health club openings programme for this financial yearis already fully committed, JJB's expectations of operating costs within itsLeisure Division have not changed. However, JJB will aim to proactively manageall costs in the light of declining levels of turnover. During the first 16 weeks of the current accounting period, JJB has opened 5combined health club/superstore units and 6 stand alone superstores. A total of11 stores including 4 superstores have been closed during this period. The take up of memberships in the 5 clubs which have been opened during the last16 weeks has been very positive and gives the Board confidence in its openingsstrategy for the combined health club/superstore units. A total of 17 openingsof these sites is planned for the 52 weeks ending 29 January 2006. Commenting today, David Whelan, Chairman said:- "In my statement of 13 April 2005, I said that trading conditions were asdifficult as any that I had known for a number of years. I believe that theseconditions will continue to deteriorate with the impact of higher interest ratesand taxes, which reduce disposable incomes, and that the low level of confidenceamongst consumers is going to take some time to reverse. In my opinion, the factors that would help to restore confidence amongstconsumers would be a series of base rate cuts, accompanied by a reversal of theGovernment's continuing increases in direct and indirect taxation. In our retail business I remain supportive of the strategic approach we outlinedin our Preliminary Results and I am confident in the enhanced profitability fromour successful combined health club/superstore units". For further information please contact: JJB Sports plc: 01942 221400 Tom Knight David Greenwood The Maitland Consultancy: 020 7379 5151 Philip Gawith Charlotte Barker This information is provided by RNS The company news service from the London Stock Exchange