The 2004 Euro football tournament has given JJB Sports, Britain’s largest sporting goods retailer, a much needed boost in sales, but comparable store sales were still down 1.3% for the first half. This is a huge improvement, however, compared to the first quarter, when comps were reported down 5.7%.

The company is reporting strong revenue growth, especially in Euro 2004 related replica jerseys, which showed a sales increase of over 23%. JJB is reporting flat margins, which is below both company and analyst expectations, given all of the hype around Europe’s largest soccer tournament.
Much of the problem lies in the fact that JJB is going head to head with discount chains and even supermarkets selling sporting goods. The systematic discounting to compete on price is eroding margins and profitability