Latest figures fail to support JJB chief's upbeat assessment
JJB Sports says it is returning to health after a long period in intensive care - but the latest numbers don't offer immediate reassurance that it is back to life.
In the half-year to July, sales at the embattled sports kit chain fell 23% to £142 million, though that is partly a reflection of the closure of
49 loss-making stores.
Other numbers are no less grim. It made a loss of £68 million in the period, far worse than last year, and saw like-for-like sales fall 18%.
For every £1 JJB currently makes in sales, it is losing 47p.
One area it sees room for improvement is football - particularly boots, socks and kit.
Today it appointed Ray Evans, until recently managing director of Kitbag, to be director of football. The sport accounts for about 20% of JJB's sales, but the company wants it to be 30%.
Chief executive Keith Jones said: "Our results for the half year have been impacted by the closing of unprofitable stores and the sell-out
of old and obsolete stock. Despite the consumer environment being extremely challenging and expected to remain so for the foreseeable future, our re-sized store portfolio and other cost-saving initiatives have allowed us to manage the business and maintain tight financial controls."
JJB has raised about £180 million from investors in the last two years as it fought for survival.
Philip Dorgan of Panmure Gordon feared there was "clearly a risk that the expected sales recovery will not materialise".
The shares fell 2.63p to 11.62p, at which price the company is valued at £34 million.
