JJB Sports plc announced its unaudited interim results for the year-to-date first half, which ended July 30, 2006.
Comp-store revenue increased by 9.5% while gross margin continues to be affected by “very strong competition” in the sports retail sector. Earnings per share fell 22.9%, attributable to the low rate of taxation in last year's comparable accounting period.
For the second half, so far, total revenue and like-for-like revenue has increased by 8.8% during the 11 weeks to 15 October 2006, accompanied by a slightly higher gross margin than that achieved in the comparative period.
The company continues to Focus on “Serious About Sport” strategy to differentiate JJB from its competitors
Commenting today, Roger Lane-Smith, Non-executive Chairman, said, “Although we are encouraged by the revenue improvement and the marginal increase
in pre-tax profit, difficult trading conditions continue to challenge the
margin. This is most evident in the sale of replica kit where the World Cup
boosted sales, but these sales were subject to intense competition on pricing.
“JJB is focusing on its “Serious About Sport” strategy to differentiate itself
from other retailers and to protect its margin by improving the quality of its
stores and products; I am pleased to report that we are gaining support from the
major brands in this approach. The Leisure Division also continues to grow and I
am very happy to report both increased profitability and membership numbers.
“Looking forward, the latest trading results give us confidence for a
satisfactory outcome to the current accounting period. However, the retail
sector continues to be highly competitive and Christmas will be an important
trading period for us.”
Summary:
2006 2005 Change
Revenue £381.6m £340.4m +12.1%
Gross margin 48.0% 49.5% -1.5%
Operating profit £18.4m £17.6m +4.5%
Net profit before taxation £18.2m £18.1m +0.5%
Profit after taxation £12.8m £16.6m -22.9%
Earnings per share 5.55p 7.20p -22.9%
Interim dividend 3.0p 3.0p
