JJB Sports Sees 7.5% Comps Decrease

JJB Sports reported that total group comparable store sales decreased 7.5% compared to last year for the period between July 28 and Dec. 7, 2008. This decrease consisted of a 6.7% increase in revenue for health clubs and an 8.9% decrease in retail sales. The core retail gross margin achieved during the same period was 210 basis points higher than last year.


The stock holding in the retail business is 28% lower than last year.
Given the difficult trading conditions, JJB started its annual sale early, two weeks ago. The retailer was pleased with the result, which will lower its gross margins, but said it is  looking to a strong sales performance in January to achieve market expectations for net income.


The company's lenders, Barclays, HBOS and Kaupthing waived the Dec. 14 due date on  the Kaupthing £20 million bridging facility, in exchange for JJB’s agreement to repay the note on a pro rata basis starting Dec. 10.

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JJB Sports Sees 7.5% Comps Decrease

JJB Sports reported that total group comparable store sales decreased 7.5% compared to last year for the period between July 28 and Dec. 7, 2008. This decrease consisted of a 6.7% increase in revenue for health clubs and a 8.9% decrease in retail sales. The core retail gross margin achieved during the same period was 210 basis points higher than last year.

The stock holding in the retail business is 28% lower than last year.
 
Given the difficult trading conditions, JJB started its annual sale early, two weeks ago. The retailer was pleased with the result but experienced a resulting pressure on gross margins. It will look to a strong sales performance in January to achieve market expectations for net income.
 
UPDATE ON THE COMPANY'S BANKING ARRANGEMENTS
The company's lenders Barclays, HBOS and Kaupthing have agreed that the Kaupthing £20 million bridging facility need not be repaid in full on the due date of 14th December 2008, but the company will instead repay £20 million pro rata across the three banks today. The banks are continuing constructive discussions with the company and are reviewing the company's plans and forecasts with a view to agreeing a basis for providing continuing support.
Roger Lane-Smith, Non-executive Chairman of JJB, said: “During the period we have made good progress on a number of fronts in the face of the difficult trading conditions that have afflicted the entire high street. The economic outlook is challenging but I am confident that the work we are doing will put JJB in the best possible shape to trade through it.”

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Teresa Hartford

Teresa Hartford Editorial & Creative Director | SGB Media teresa@sgbonline.com | 704.651.5741

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