JJB Sports, the U.K.s largest outdoor and sporting goods retail chain, reported that year-to-date revenues through July 3 were down 8.9% compared to last year. Comparable store sales were down 9.4%. Both metrics were impacted primarily by the very high levels of sales of football replica merchandise generated by the Euro 2004 competition during May and June 2004. But after removing replica merchandise from the picture, JJB still had a 6.1% sales decline for the period.
The gross margin at JJBs retail stores was described as “marginally lower” than last year, but the addition of the companys health clubs boosted this metric so that the combined figure is slightly higher than last year.
“I do not anticipate any material improvement in retail trading conditions before Spring 2006 which I hope will be followed by a successful sales campaign during the 2006 World Cup in May and June of that year,” said JJBs founder and retiring chairman, David Whelan.
Whelan last week announced his retirement from the chairman role. However, he will remain on the Board in the capacity of executive director. Whelan, who formed JJB in 1971, has been either CEO or chairman of the company since its inception. The Nominations Committee of JJB appointed Roger Lane-Smith as non-executive chairman to replace Whelan. Mr. Lane-Smith has been a non-executive director of JJB since 1998.