17th Jul 2007 07:01
JJB Sports PLC17 July 2007 JJB SPORTS PLC AGM TRADING STATEMENT JJB Sports plc ("JJB") is today holding its Annual General Meeting and is takingthis opportunity to provide an update on current trading. Current trading Total revenue for the 24 weeks to 15 July 2007 including that from retail storesand from health clubs, was 3.9 per cent lower than the same period last year andincludes a like-for-like decrease in revenue (on operating units which have beentrading for over 52 weeks), of 4.1 per cent. Taking out revenue from replicaproducts which have been affected by the World Cup in 2006, gives an increase intotal revenue of 1.8 per cent including a like-for-like increase of 1.4 percent. However, the combined gross margin from both the retail stores and the healthclubs for the 24 week period, was 240 basis points higher than that earned inthe comparative period last year; this includes an increase in the gross marginearned in the retail stores of 200 basis points. On 6 June 2007, we issued our Interim Management Statement which showed, asflagged at our Preliminary Results in April this year, a reduction in totalrevenue for the 18 weeks to 3 June 2007 of 1.2 per cent. This included adecrease in like-for-like revenue of 1.8 per cent against the comparable periodlast year which saw strong trading results positively impacted by the run-up tothe 2006 FIFA World Cup finals. The period during which the finals of the World Cup were played in 2006 occurredin the 6 weeks from 4 June to 15 July; as a result, levels of revenue achievedfor the comparable period this year are particularly affected. Revenue from all other store product categories, and from the health clubs, forthe 24 week trading period, has been positive in relation to the comparativeperiod; revenue from the health clubs and indoor soccer centres increased by20.8 per cent. Health Clubs JJB has opened 4 combined health clubs/superstores since 29 January 2007 and nowtrades from 43 health clubs. Although opening programmes for combined units canbe affected by delays in obtaining planning permissions and the length of thebuild period, we still plan to open a total of 8 combined units during the 52weeks to January 2008 and 17 combined units in the following year. Own brand review JJB is looking to increase its proportion of own brand revenues and sincejoining JJB as Deputy CEO on 8 June Chris Ronnie, who has particularresponsibility for product development and sourcing, has been undertaking areview of JJB's existing brand arrangements and JJB is considering a number ofopportunities. Roger Lane-Smith, JJB's Non-executive Chairman commented: "We have now passed through the trading period which included the very difficultcomparatives of the 2006 World Cup. I believe that despite these toughcomparatives our trading results have been satisfactory. "I look forward to what I believe will be a more positive second half of thecurrent accounting year. We will continue to focus on our policies of productdifferentiation, improving our gross margin and the continuing growth of ourLeisure Division to drive and enhance our performance". For further information, please contact: Tom KnightDavid Greenwood 01942 221 400JJB Sports Plc Lydia PretzlikCharlotte Walsh 020 7379 5151Maitland This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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