JJB Sports plc total revenue for the 18 weeks to 3 June 2007, including that from retail stores and from health clubs, was 1.2% lower than the same period last year and includes a comp-store decrease in revenue, of 1.8%. However, the combined gross margin from both the retail stores and health clubs for the 18 week period was 260 basis points higher than that earned in the comparative period last year.
In the Preliminary Results statement in respect of the 52 weeks to 28 January
2007, issued on 12 April 2007, the company referred to trading results for the 9
weeks to 1 April 2007 which included an increase in total revenue of 4.3%. JJB's management pointed out then that the figures of spring/summer of 2006 would be
difficult to match this year because of the levels of revenue from England
replica kit and associated accessory products achieved before and during the
FIFA World Cup in 2006. For comparison purposes, if all replica kit revenues are
taken from total revenues for both the 18 weeks to 3 June 2007 and the
comparative period, then there would have been an increase in total revenue of
2.6%. All other product categories achieved increases in revenue. A
significant part of the increase in the combined gross margin arose from the
retail store results.
The introduction of adidas and Nike in-store areas within JJB superstores is proceeding and on June third, 83 adidas and 53 Nike in-store areas were in operation. It is anticipated that by the end of this calendar year JJB shall have installed over 200 adidas areas and approximately 100 Nike areas. The trading results from those retail stores that have had in-store areas installed, both in terms of revenue and of gross margin, are better than the average for our retail stores.
JJB has opened a further 3 combined health clubs/superstores since 29 January 2007 and now trades from 42 health clubs. Revenue from the health clubs and indoor soccer centres has increased by 21.9% for the first 18 weeks of this year, compared to last year, and memberships at 31 May 2007 totaled 181,200 members, compared to 153,000 at the same date last year.
Although opening programs for combined units can be affected by delays in obtaining planning permissions and the length of the build period, we currently expect to open a total of 8 combined units during the 52 weeks to January 2008 and 17 combined units in the following year.
Roger Lane-Smith, JJB's Non-executive Chairman, commented
“Trading results for the first 18 weeks of the current accounting period is in-line with our expectations and I remain confident that our policies of product differentiation within our retail stores and the expansion of our chain
of health clubs, will provide future growth”.
