Profits Expected To Fall For JJB Sports

JJB Sports has warned that it expects its full-year profits to fall short of market forecasts as the wet UK summer combined with an already competitive market to hit sales. The sportswear retailer said that it "considers it unlikely that the market expectations of net profit before tax and goodwill amortisation of GBP88m will be achieved and anticipates a shortfall of approximately 20 per cent."

Last month, JJB stated that its overall clothing sales had been weak, despite good sales of replica kits during the Euro 2004 tournament. Turnover for the 23 weeks to July 4 was 1.1 per cent down, with like-for-likes down 1.3 per cent. Updating on its recent performance, JJB said in the six weeks to August 15, "sales have been affected by the unseasonably wet weather which has resulted in lower sales volumes of JJB's summer clothing products such as t-shirts, polo shirts and shorts and to a certain extent have been affected by continuing strong competition."

Total turnover for the 29 weeks to August 15 is 2 per cent down, with an identical reduction in like-for-like turnover. The company said that the final outcome for the year will depend upon its performance during the Christmas period, and its store opening programme remains in place.