Page last updated at 14:57 GMT, Wednesday, 10 December 2008

JJB Sports' retail sales plunge

JJB Sports store

Shares in JJB Sports have fallen by 14% after the retailer reported a big drop in sales for the past few months.

Total group sales on a like-for-like basis, which excludes the impact of new stores, were down 7.5% in the 19 weeks to 7 December compared with a year ago.

Sales at JJB's stores were down 8.9%, but revenue from the company's health clubs rose by 6.7%.

The retailer has been hit hard by the downturn in consumer spending and issued a profit warning in September.

"During the period we have made good progress on a number of fronts in the face of difficult trading conditions that have afflicted the entire high street," JJB's non executive director Roger Lane-Smith said.

He expressed confidence that the group would survive the downturn.

Disposals

JJB has been hit harder than many retailers by the drop off in consumer spending.

In September, it reported a 9.7m six-month loss, citing the worst retail recession it had ever known, and warned that it might breach its banking covenants.

The company's share price has fallen more than 90% in the past year. After its latest trading update the shares fell 14%, before recovering to stand down 0.5p, or 4.6%, at 10.5p.

JJB said it had received a number of enquiries from potential buyers of its Fitness Clubs business.

However, an approach for its LifeStyle division, which includes Qube and Original Shoe Company, first announced in October, had come to nothing.

"The LifeStyle division continues to trade at a loss and the board continues to consider its options in respect of the future of this business," JJB said.



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SEE ALSO
JJB Sports eyes assets sell-off
14 Oct 08 |  Business
Insurer withdrawal threatens JJB
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JJB hit by 'retail recession'
26 Sep 08 |  Business
JJB to pay replica shirt refunds
09 Jan 08 |  Business

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