JJB enjoys happier Christmas despite weak second half
JJB Sports said that like-for-like sales in the four weeks to Boxing Day increased by 5% on last year, while its gross margins improved by 6%.
Shares, which have slumped in the last 18 months, rose 25% ot 1.4p to 7p on the news. The group’s market value is now just over £20m.
However, the happier festive period compares with a December in 2010 when trading in the early part of the month was blighted by snow. JJB added that like-for-like sales for the 21 weeks running up to Boxing Day had dropped by 7.8%, compared with a fall of 17.7% in the first half of the year.
The firm’s cash gross margin also continued to decline by 3.2% on a like-for-like basis, although this was a major improvement on the 31.7% drop in the first half.
Chief executive officer Keith Jones said: “Our overall trading has improved in the second half of the financial year and we achieved a Christmas trading performance broadly in line with our expectations in the face of an extremely challenging consumer environment.
“Looking ahead, the ongoing credit squeeze on consumers and weaker UK employment numbers creates a tough environment.
“We continue to implement our turnaround aware of the importance of the periods of the January sales, European football championships and London Olympics”.
JJB Sports has managed to offload 100,000 sq ft of surplus warehouse space at its Martland Park base in Wigan, however.
CBRE and Littler & Associates acted jointly on behalf of the retailer to lease the unit to Torque Logistics.
Paul Cook, associate director of Industrial Agency at CBRE, said: “Martland Park provides an ideal opportunity for Torque Logistics to expand its business into a high bay modern distribution facility with excellent motorway communications.”
