JJB Sports plc reported that total revenue for the first half ending July 15, 2007 declined 3.9% from the same period last year, with a comparable store sales decrease of 4.1%. However, excluding revenue from replica products, which was buoyed by the World Cup in 2006, saw the retailer post an increase in total revenue of 1.8% with a like-for-like increase of 1.4%.
Overall gross margin for the period, was 240 basis points higher than that earned in the comparative period last year; this includes an increase in the gross margin earned in the retail stores of 200 basis points.
Revenue from all other store product categories except for replica products, and from the health clubs, for the first half, has been positive in relation to the comparative period; revenue from the health clubs and indoor soccer centres increased by 20.8%.
Health Clubs
JJB has opened 4 combined health clubs/superstores since 29 January 2007 and now trades from 43 health clubs. Although opening programmes for combined units can be affected by delays in obtaining planning permissions and the length of the build period, we still plan to open a total of 8 combined units during the 52 weeks 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 since joining JJB as Deputy CEO, Chris Ronnie, who has particular responsibility for product development and sourcing, has been undertaking a review of JJBs existing brand arrangements and JJB is considering a number of opportunities.
Roger Lane-Smith, JJBs Non-executive Chairman commented:
“We have now passed through the trading period which included the very difficult comparatives of the 2006 World Cup. I believe that despite these tough comparatives our trading results have been satisfactory.
I look forward to what I believe will be a more positive second half of the current accounting year. We will continue to focus on our policies of product differentiation, improving our gross margin and the continuing growth of our Leisure Division to drive and enhance our performance.”
