11th Sep 2007 07:03
JJB Sports PLC11 September 2007 11 September 2007 JJB Sports plc Market Update JJB Sports plc ("JJB") updates the market in advance of its Interim results forthe 26 weeks to 29 July 2007, which will be published on 28 September 2007. Total revenue for the 26 weeks to 29 July 2007, including that for both theretail stores and the health clubs, was 4.3 per cent lower than the same periodlast year and includes a like-for-like decrease in revenue of 4.4 per cent (onoperating units which have been trading for over 52 weeks). The most significantimpact on the decrease in revenue has been the tough comparatives set by the2006 World Cup. While total retail store revenue is down 6.2 per cent on thecomparative period, retail store revenue excluding replica products decreased by1.3 per cent over the same period. The combined gross margin achieved during the 26 weeks to 29 July 2007 was 280basis points higher than that achieved in the same period last year. The management accounts for the 26 weeks to 29 July 2007 show a net profitbefore tax, (and before any net gain/(loss) on the disposal of property, plantand equipment) of approximately £8 million, which is £3.5 million below ouroriginal expectations. Trading results for the 6 weeks to 9 September 2007 have been broadly similar tothose of the comparative period. We therefore believe that it is prudent toassume that the outcome for the full 26 week period to 27 January 2008 will be atrading result similar to that achieved in the comparative period. Detailed consideration is currently being given to the continuation of ourstore-in-store policies with adidas and Nike and we are in discussion with boththese companies about how to optimise their brand presentation within ourstores. We are fully committed to working closely with these two major brands. We are also seeking to increase the proportion of "own brand products" withinour stores and are in negotiation with a number of brands to acquire their UKdistribution rights, enabling us to achieve a higher proportion of our retailrevenue in future from this category of supplier. The planned expansion of our chain of combined health clubs/superstores iscontinuing and we currently anticipate that we will open 9 of these units duringthis current accounting period and up to 14 during the next accounting period of2008/09. For further information, please contact: Chris RonnieDavid 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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