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Last Updated: Friday, 6 January 2006, 08:47 GMT
JJB profits set to miss forecasts
JJB Stores
Despite a challenging Christmas JJB looks forward to a stronger 2006
Sportswear retailer JJB Sports has reported a rise in Christmas and New Year sales but warned that annual profits would fail to meet forecasts.

JJB cut prices to boost festive trade, but it said the higher sales over the festive period "more than compensated".

Like-for-like revenues for the six weeks ended 1 January were up 2%.

However, lower profit margins on sales mean annual profits are now set to be between 32m and 36m, lower than earlier forecasts of 40m to 45m.

I believe that JJB will achieve a better performance in the coming financial year than that achieved in the current year
Roger Lane-Smith, chairman

JJB says the retail environment has been very competitive, particularly in clothing and footwear. One of its rivals - Allsports - went into administration in September.

"I am disappointed with the company's trading performance for the 22 weeks ended 1 January, 2006," said chairman Roger Lane-Smith.

Looking ahead, JJB was more upbeat and plans to open more combined health clubs/superstores.

The FIFA World Cup in June should also bring in more revenues.

"I believe that JJB will achieve a better performance in the coming financial year than that achieved in the current year," said Roger Lane-Smith.




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