Hot Features
Premium
Trade like a pro: Leverage real-time discussions and market-moving ideas to outperform.
British sports retailer JJB Sports (LSE:JJB) disclosed Monday the group’s first 22 weeks ending 1st July 2012 experienced a “deterioration” in trading performance as the hype over the European Football Championships did not meet the expected sales, due in part to an early summer weather.
The group issued the profit warning days before the annual general meeting set on 19th July, when it will provide the details of the first quarter operations.
In a statement released to the public, the Wigan-born retailer said like-for-like sales dropped 8% in contrast with the group’s sales during the first nine weeks ending 1st April 2012.
“The expected peak in sales in connection with sales of replica football kits and associated products generated from consumer interest in the European Football Championships did not materialise to the extent anticipated,” JJB stated, referring in particular during May and June.
Difficult Times
The current condition is what faces Bob Corliss, who joins the Board of JJB as Deputy Chairman and soon to be Chairman come 1st September 2012, who is still optimistic of the value of the company.
“JJB has been through some difficult times yet it is clear that there is a real market opportunity for a national authentic sports retailer here in the UK. JJB can be that retailer and I’m energized by the prospect of leading the company through the next phase of its turnaround,” Mr. Corliss, who spent nine years as Chief Executive of The Athlete’s Foot, said in relation to his appointment.
For four consecutive years since 2009, JJB has not been making profit with losses of over £103 million in 2011.
The group had to seek funding from US counterpart Dick’s Sporting Goods, which committed £30 million financing and earned a 3.1% interest in the company.
Net debt now stands at £15.4 million, down from £20.6 million as at 1st April 2012.
Shares of JJB plummeted to as low as 6.95 pence per share on the London Stock Exchange in early morning trading following the news.
Company Spotlight
JJB Sports plc was established in 1971 with one store in Wigan to over 120 stores and is now present in most major towns and cities in the UK as well as in Ireland.
The company trades on the Alternative Investment Market.
this company is crap