JJB Sports Plc reported comp sales for the five weeks ended Jan. 29 decreased 5.7 percent and comparable cash gross margin increased 32.1 percent in the same period, according to unaudited figures released by the British sporting goods retailer.
The company, which is about 18 months into a what it estimates will be a three- to five-year turnaround plan, reported that cummulative comps store sales in the second half of the year ended Jan. 29 were down 7.6 percent, compared to a decrease of 17.9 percent in the first half ended July 31, 2011. In the same period, comparable cash gross margin increased by 0.3 percent compared to a decrease of 37.4 percent in the first half. Cumulative comp store sales for the 52 weeks ended Jan. 29 have decreased by 13.1 percent and comparable cash gross margin has decreased by 22.0 percent.
“Since our Christmas trading update our like for like cash margins have continued to improve and our full year trading performance is broadly in line with our expectations in the face of the extremely challenging consumer environment,” said CEO Keith Jones, who has spearheaded a restructuring of the retailer since mid-2010. “As we commented last month, weaker UK employment numbers and the ongoing credit squeeze on consumers create a tough environment. However, we are continuing to implement our turnaround aware of the importance of the key trading opportunities afforded by the European football championships and Lond Olympics.”
JJB's stores are increasingly of a superstore concept, which average 11,000 square feet of selling space and in which full product ranges can be better displayed. The product ranges include sports textiles, footwear, replica shirts, equipment, accessories, cycles and golfing products. The company now operates stores in most major towns and cities of the United Kingdom and online.
