JJB reports deeper sales slump

RETAILER JJB Sports today said trading remained under pressure after like-for-like sales slumped 8.9%.

The Wigan-based firm saw its shares slump nearly 14% as today's figure represented a deterioration on the 5.6% decline reported in September.

JJB also disappointed investors by revealing that plans to sell its Original Shoe Company and Qube lifestyle brands had so far come to nothing.

JJB said total group like-for-like sales, excluding the lifestyle brands, were down 7.5% in the period from July 28 to December 7. This consisted of the 8.9% drop in retail sales, alongside a 6.7% increase at its health clubs.

JJB said difficult trading conditions caused it to start its sale early. The company said it was "pleased" with the increased sales achieved in the first two weeks of promotions, even if these would give it a lower margin.

But it warned market expectations of its profit would depend on continuing a "good sales performance" in the January sales.

JJB also announced it had agreed with its debt providers Barclays,
HBOS and Icelandic bank Kaupthing that a £20 million bridging loan from Kaupthing need not be repaid in full by December 14. However, it will still pay £20 million today to be shared between the three banks.

Chairman Roger Lane-Smith said the company had made good progress on a number of fronts in light of current market conditions.

"The economic outlook is challenging but I am confident that the work we are doing will put JJB in the best possible shape," he said.