JJB Sports, the UK's second largest sporting goods retailer, said it remains cautious on prospects for Christmas. Same-store sales were up 1.6% in the 17 weeks to November 25, which was below expectations. JJB had earlier reported a 5.2% increase in like-for-like sales for the eight weeks ending September 23. On the upside, JJB reported that gross margins in the 17-week period were higher than the 380 basis points improvement seen in the eight weeks to September 23. The group operates sports stores as well as fitness clubs combined with a superstore. Same-store sales at its stores increased 1.4%.
Looking ahead, JJB said it remains cautious about current retail market conditions and the board still believes second half sales will be flat to last year. JJB's chairman, Roger Lane-Smith, said: “We continue to be cautious about the retail market outlook both in the run up to Christmas and into 2008.”
JJB said the exit of England's national team from the finals of the 2008 European soccer championship finals is not anticipated to have “any material impact” on its year ended January 2008. But the tournament will provide no “incremental revenues,'' to next year's results. That guidance is in sharp contrast to that of key competitor Sports Direct (SEW_0748).
JJB's sales of soccer gear increased 36% when England played in the last European championship finals in 2004. The retailer gets about 15% of its revenue from sales of replica uniforms, including England jerseys and those of clubs in the country's Premier League.
