JJB Sports sees sales slide after World Cup

JJB Sports this week revealed a slide in figures of 4.1 per cent for the 24 weeks to 15th July. The firm, which is the official store for England football merchandise, is expecting a more positive second half of its financial year. The company exceeded expectations last year in the run-up to the World Cup with fans snapping up replica England shirts.

Company executives were bracing themselves for a fall in takings in the comparative period t his year. Chairman Roger Lane-Smith stated: “We have now passed through the trading period which included the very difficult comparatives of the 2006 World Cup. Despite these tough times our trading results have still remained satisfactory.”

JJB, which operates more than 400 stores across Britain, said like-for-like revenue fell 1.8 per cent in the first 18 weeks of its financial year. A month ago, owner Dave Whelen shocked the City by netting £190 million from the sale of his 29 per cent stake. He also stepped down from the board, prior to being appointed an honorary life president.

www.jjbsports.com
19 July 2007

JJB Sports in takeover controversy

The buyers of a major stake in JJB Sports have given written reassurances that they are not linked with Mike Ashley, who runs rival Sports Direct. Suspicions that Ashley may be behind the purchase were aroused this weekend when JJB announced that its founder, Dave Whelan, and his family had sold their entire 29 per cent stake, worth £190m, to a joint venture vehicle set up by sports executive Chris Ronnie and Icelandic financial group Exista.

Both Ronnie and Exista have links to Ashley, who recently took over Newcastle United. Exista has had cross-shareholdings with fellow Icelandic bank Kaupthing, which advised Ashley on the Newcastle deal, while Ronnie, a former chief operating officer at Umbro, has worked for the reclusive tycoon. Ronnie will become deputy to Tom Knight, JJB's chief executive. Knight said: 'We have had assurances from them in writing.'

11 June 2007

JJB revenue slows

JJB Sports on Wednesday stated total revenue for the 18 weeks to 3 June 2007, including that from retail stores and from health clubs, was 1.2 per cent lower than the same period last year and includes a like-for-like decrease in revenue (on operating units which have been trading for over 52 weeks), of 1.8 per cent.

“For comparison purposes, if all replica kit revenues are taken from total revenues for both the 18 weeks to 3 June and the comparative period, then there would have been an increase in total revenue of 2.6 per cent,” said JJB. Non-executive chairman Roger Lane-Smith said "Trading results for the first 18 weeks of the current accounting period is in-line with our expectations and I remain confident that our policies of product differentiation within our retail stores and the expansion of our chain of health clubs, will provide future growth.”

www.jjbsports.co.uk
6 June 2007

JJB to go digital

JJB Sports is thought be in talks to launch a digital TV channel. The high street sports retailer, founded by Wigan Football Club chairman Dave Whelan, is said to be close to launching JJB Sports TV, after having spent £3.3 million for the Golf Channel UK and the Golf TB Pro-Shop channel last year. According to the Scotsman, the channel will likely show a mix of editorial sports programmes, including ladies' golf, and will also function as a shopping network. The channel is expected to reach eight million homes in the UK. Further news of developments will most likely be revealed during the company's release of its annual results later this week. The market expects a rise in pre-tax profits to £40.4 million on sales up 8 percent to £811 million.

www.jjbsports.co.uk
10 April 2007

JJB Sports founder sells stake

JJB Sports founder David Whelan has raised £50m through the sale of an 8.6% stake in the sportswear retailer. Mr Whelan said he had sold 20.5 million shares for personal reasons, leading to speculation that he will buy players for his football club Wigan Athletic. Mr Whelan founded JJB Sports in 1971 and it now has more than 430 shops. He bought Wigan Athletic in 1995. The sale of an 8.6% stake in JJB Sports reduces Mr Whelan and his family's holding to around 29%. Analysts said Mr Whelan had taken advantage of JJB's high share price, which has outperformed the UK retail sector average by 30% over the past 12 months.

The firm's shares have risen strongly over the past year, due to its revenue growth, but also rumours that it could be a bid target for unnamed suitors. Analysts were unsure whether Mr Whelan's sale makes a possible bid more or less likely, but he has pledged not to sell any more shares in the business for at least 12 months. "The speculation would be that Wigan is getting near to the relegation zone and has had difficulty getting their hands on new players and this would give him more firepower to pay big bucks," said one analyst, who declined to be named. JJB's shares were down 4.4% to 246.75p in Friday trading.

www.jjbsports.co.uk
29 January 2007

JJB workers on strike

Employees of British sports retailer JJB Sports are going on strike over the company's pay rates and bonus schemes. 266 member of the general union GMB, who are employed by the JJB distribution warehouse in Wigan , will hold two days of strikes next Tuesday and Thursday. The warehouse is the only one that distributes to all 430 JJB high-street shops. According to GMB Lancashire organiser Sandra Blight, the company has not returned with an offer other than its original offer of a pay rate of 3 percent. For Blight it is not so much about the number, which she does not consider unreasonable, as it is about the principle. "This is about getting all the workers in the distribution warehouse on the same pay rate," she says. "Currently, everyone is on a different pay rates and only the pickers are eligible for bonuses. This is something else we want to see changed. We are trying to get one basic pay rate and a bonus scheme for all the workers, no matter what their skills. The better the skill set, the more they should be rewarded, but the basis should be the same." According to her, the lack of uniformity is causing tension on the work floor, which is detrimental to overall production levels and atmosphere.

Blight claims that GMB and JJB had almost reached an agreement, based on one of the retailers' director's proposals. At the very last minute, however, founder and executive director David Whelan rejected the proposal. Since then, she asserts, the director in question - Tom Knight - has changed his tune. "We were on a local radio programme together and I found him claiming a single rate of pay was preposterous, when that had been part of his initial proposal!" Whelan is currently on holiday for a few weeks, so there seems to be no way to avoid a strike. JJB executives could not be reached for comment.

www.jjbsports.com
26 October 2006

JJB Sports cautious despite sales growth

Although JJB reported a rise in revenues for the first half of 12.1 percent to £381.6 million, the company maintained a cautious outlook. "Although we are encouraged by the revenue improvement and the marginal increase in pre-tax profits, difficult trading conditions continue to challenge the margin," said non-executive chairman Roger Lane-Smith. Like-for-like sales increased 9.5 percent

JJB is trying to differentiate itself from its competitors with its "Serious about Sports" strategy, which involves using the slogan in advertising and improving product ranges in stores. The company has built its offer around Nike and Adidas, with lower-priced ranges from a number of brands including Patrick, Olympus , Lotto, Le Coq Sportif and Slazenger. It believes that its "close relationships with both the Nike and Adidas brands will result in a much wider range of exclusive products being on offer at JJB", thereby competing successfully within the market. One of these relationships also resulted in the launch of a new Adidas store within its superstores. The company hopes to duplicate this initiative with Nike. It has also recently begun to stock products from the US apparel brand UnderAmour, with whom it signed a retail and wholesale agreement. JJB said that the expansion of its Leisure Division - the company operates a number of health clubs - was on track and both membership and profit were up. Twelve more clubs are in the pipeline for this year, bringing the total to 44.

The company said revenues and like-for-like revenues increased 8.8 percent in the eleven weeks to 15 October. The gross margin increased slightly compared with that of the comparative period. "Looking forward, the latest trading results give us confidence for a satisfactory outcome to the current accounting period," said Lane-Smith. "However, the retail sector continues to be highly competitive and Christmas will be an important trading period for us. We will continue to be focused upon value, quality and service and to be 'Serious about Sport'".

www.jjbsports.com
18 October 2006

Lilywhites owner takes shares in JJB

The secretive sportswear billionaire who owns Lillywhites and Sports World is understood to have built a 10% holding in rival retailer JJB. The revelation about Mike Ashley's stake - which is held through a contract for difference (CFD) - is likely to spark speculation about whether he might launch a bid for JJB. But it will also reignite the debate about the disclosure of stakes held through derivatives such as CFDs.

If Ashley held the shares directly, he would have had to declare his holding once it topped 3%. However, because the shares are held by securities firm Man Financial - to cover his derivative position - he is under no obligation to declare his interest. City advisers to JJB have long suspected that the Man Financial stake was acquired to cover a derivative position held by Ashley - but they have been unable to force him to declare his interest. However, this weekend friends of Ashley confirmed that the secretive billionaire controlled a 10% stake through a CFD with Man Financial.

News of Ashley's stake is bound to infuriate David Whelan, the chairman and founder of JJB. The two men are known to despise each other.In 2000, Ashley blew the whistle on the price fixing of replica football shirts by rivals - including Whelan - when he complained to the Office of Fair Trading. The OFT found JJB guilty and fined the retailer £6.3m. Shares in JJB closed this week at 180p. Whelan and his family still own a 41% stake in the business.

31 July 2006

JJB Sports profits take nose-dive

JJB Sports last week posted a loss in annual profits of 45 percent. The price war on the high street was the cause of the slump. The sportswear chain said that decreasing sales and major discounting has caused operating profits to drop to £34.3 million from £62.1 million the year before. The results were in line with analysts' expectations, after JJB has issued a series of profit warnings. Fierce competition from Sports World International and JD sports, as well as from supermarkets looking for a piece of the sports and leisurewear pie, proved too much for JJB.

Earlier this month Britain's biggest sportswear provider Sports World International reported an annual sales rise of 45 percent, with revenues of £905 million. JJB reported revenues of £745.2 million, a drop of 3.6 percent, with like-for-likes sales down 4.3 percent. The company said that trading in 2006 was in line with expectations. Like-for-like sales were up 2.6 percent, although gross margins fell to 46.1 percent from 49 percent due to aggressive pricing.

JJB is increasingly looking to invest in health clubs and out-of-town stores to boost growth. "Although not unexpected, the fall in the full-year profits is disappointing," said non-executive chairman Roger Lane-Smith.

www.jjbsports.co.uk
24 April 2006

JJB Sports gives profit warning

Sporting goods retailer and health club operator JJB Sports will issue its seventh profit warning in 18 months on Friday. The company has suffered under a price war in the sporting goods market and said that resulting pressure on margins would send pre-tax profits to £32 million to £36 million, almost 50 percent down from £63 million in the previous year. The warning sent shock waves through the City. "I haven't seen that many businesses fall apart as quickly as this," analyst Sanjay Vidyarthi of Teather & Greenwood told the FT. "It was making nearly £100 million four years ago. In April, I was looking for £61 million this year, but today I've cut it back further to £33.5 million."

JJB blames the competition and admits to having a slow reaction to their lower prices. "We only recently came to the conclusion and in October we brought prices down," said finance director David Greenwood. "We are now accepting that competition on the high street generally is so strong that these are the sort of prices we are going to have to have." Greenwood did say that underlying sales were improving and pointed out that this year's World Cup would help, but admitted that tough market conditions would probably persist for at least six to nine months.

www.jjbsports.com
9 January 2006

JJB suffers poor performance

Sporting goods retailer JJB Sports has posted disappointing first-half sales. The group reported sales were still down 3.1 percent for the 10 weeks to 9 October, although they had improved since the first half. The group, 39 percent-owned by founder and former chairman David Whelan and his family, said that underlying sales had dropped 4.3 percent in the 10 weeks to 9 October, which was an improvement on the 8.8 percent drop it suffered in the first half. Gross margin had fallen by 1.2 percent.

Clothing sales continued to suffer due to competition from Tesco and Matalan, and footwear also performed poorly. Chief executive Tom Knight said that the health club business was undervalued by analysts, but had to admit that new openings would not lift profit in the short term. "Some people still don't understand the future value of this business," he told the FT. "It has two revenue streams from one property and some don't get that."

www.jjbsports.co.uk
13 October 2005

JJB sales drop

British sports retailer and healthclub group JJB Sports posted a drop in sales for the 22 weeks ending 3 July. Sales dropped 8.9 per cent while like-for-like sales fell by 9.4 per cent. In the six weeks ending 3 July, results took an even greater turn for the worse, with total turnover down by 11.7 per cent and like-for-like sales down by 13 per cent.

John Stevenson, analyst for Shore Capital, told the FT: "I don't believe the company has addressed the changes in the market in the last couple of years. They have a lot of challenges: the estage is in need of work, the fashion market has moved away from sports wear, and the market is extremely competitive." Analyst have also indicated that, aside from a general poor retail climate, JJB is suffering from the effects of competition from rivals like Sports Soccer.

The extreme drop in turnover was partially due to a boost in sales in 2004, with the Euro 2004 footbaal competition during May and June. Had the boost in the sale of football merchandise not occurred, the decline in turnover would have been a less dramatic 6.1 per cent.

Chairman David Whelan confirmed on Wednesday that he was stepping down from his position. In reference to the retail climate, he said: "I do not anticipate any material improvement in retail trading conditions before spring 2006." Whelan intends to spend more time on his football club, Wigan Athletic. However, the company said that although is role in the company would be "slightly reduced", he intends "to maintain all his day-to-day contacts and duties, and the duties that he will relinquish will be those more directly related to his former position as chairman of the company."

Roger Lane-Smith, a non-executive director since 1998 and former senior partner and chairman of law firm DLA Piper Rudnick Gray Cary, has been appointed non-executive chairman.

www.jjb.co.uk
7 July 2005

JJB further sales decrease

British sporting goods chain JJB Sports has reported continued sales decreases. The company blames the poor performance on a difficult trading environment and a lack of large-scale sports events. JJB's sales for late April and May showed a double-digit percentage drop, with a total decline of 7.7 per cent for the 16-week period ended 22 May.

The company's performance in 2004 was boosted by replica football uniform sales during the Euro 2004 tournament. JJB said it hoped the company would profit as much from the 2006 World Cup.

www.jjb.co.uk
30 May 2005

JJB cuts numbers

The British sporting goods retailer JJB Sports Plc is set to cut its clothing supply base. In doing so it will reduce its sportswear collections following a fall in sales of 1.6% in the 23 weeks ending 2 January. Total sales for the Christmas and New Year trading period fell 2 %, with like-for-like sales decreasing by 14%.

In a further bid to cut short falling sales, JJB is also asking its suppliers to provide the group with mid-price sportswear. This would also help the company differentiate itself from its rivals. JJB is currently the UK's largest sportswear chain, with 437 stores.

www.jjb.co.uk
10 January 2005

JJB Takeover Halt

There have been more problems for struggling sportswear chain JJB Sports with the end of takeover talks and a cut in profits. Shares fell 20 per cent on the takeover failure and news that annual profits slumped by almost a quarter. The Wigan-based company said its board had concluded that the takeover approach had been "unlikely to lead to an offer that would reflect the fair value of the company".

The group revealed the approach in a statement last Friday. Shares soared 24 per cent after the announcement, which followed a failed bid by JJB's chairman to take the company private last year. Cinven is understood to have approached Dave Whelan, a former footballer and chairman of JJB, in recent weeks.

The group has struggled in the face of tough competition since 2003, when annual profits dropped for the first time since its flotation and issued a profits warning in July. JJB, with 448 stores across the country, is the UK's biggest sports chain and was valued at around £600m.

www.jjbsports.co.uk
13 October 2004

JJB Sports In Takeover By Cinven

The mystery player behind a potential takeover approach to JJB Sports is private equity player Cinven, according to reports. News agency Reuters quotes "a source close to the process" as confirming that Cinven is behind the approach, backing up a weekend report in the Sunday Times. JJB, the UK's biggest specialist sports retailer, confirmed a bid approach last week, without naming the potential bidder.

The newspaper reported that Cinven had appointed investment bank Merrill Lynch to advise it on a bid, and had approached JJB Chairman Dave Whelan, founder of the company. Cinven has not yet been granted access to JJB's books, said Reuters. Other private equity bidders would be likely to come forward if JJB goes up for sale officially.

www.jjbsports.co.uk
6 October 2004

JJB Sports Confirms Bid Interest

JJB Sports has confirmed that it has received am approach from a potential bidder for the group. Responding to movements in its share price and subsequent press reports, the company said: "The Board of JJB Sports plc has noted recent press speculation and announces that it has received an approach which may or may not lead to an offer for the company."JJB gave no further information. The company saw strong trading in its shares on Thursday and Friday as the City responded to rumours of a takeover approach. JJB issued a profits warning at the end of August, fuelling speculation that it could attract the attention of private equity fund looking for bargains in the UK retail sector.

The group has around 450 UK stores. Any bid would need the support of chairman and major shareholder David Whelan, the company founder. Whelan attempted to take the company private last year, but failed to win support for a bid. Along with venture capital players, the City has speculated that Mike Ashley, owner of the Sports Soccer chain and Lillywhites in London, or retail entrepreneur Tom Hunter, who sold his Sports Division chain to JJB six years ago, could be behind then approach.

www.jjbsports.co.uk
2 October 2004

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.

www.jjbsports.co.uk
19 August 2004

Sales Decline At JJB Sports

An increase in the sale of replica shirts associated with the Euro 2004 football tournament has failed to prevent a drop in sales at JJB Sports. In a trading statement ahead of its annual general meeting on Friday, it said sales in the 23 weeks to 4 July were 1.1 per cent lower than in 2003.

Despite the strong increase in replica shirts, other clothing fell by 15 per cent. JJB Sports blamed this decline on the weather being consistently warmer, from spring onwards, during 2003.

www.jjbsports.co.uk
9 July 2004

JJB Sports might sell TJ Hughes

JJB Sports has said to talk about the sale of discount retailer TJ Hughes while posting a 26 per cent fall in first-half pre-tax profit to GBP 24 million. JJB said that the board had entered into discussions which may lead to the sale of TJ Hughes, but that talks are in an early stage. JJB acquired TJ Hughes in March 2002 and decided to put the chain up for sale after a review of the group's activities.

JJB posted a 13.6 per cent increase in sales to GBP 460 million with sales for the JJB business rising 1.6 per cent to GBP 368 million, but declining 3 per cent on a like-for-like basis over the first half ended 27 July 2003. The increase in group sales was mainly due to the acquisition of TJ Hughes. TJ Hughes saw it's sales rise with 5.6 per cent to GBP 92 million.

www.jjbsports.co.uk
8 october 2003

New JJB kid's line

British sportswear retailer, JJB Sports, has divulged plans for the launch of a new value-priced kidswear brand. The move is part of a product overhaul. The company has not yet decided on a name for the new brand but said it would go head-to-head with supermarket giant Asda's George label.

JJB CEO Tom Knight said: "Asda hit us hard on kidswear last year. Buying from brands, you just can't compete on price, but we will be able to with our own label." He continued: "Kids up to 10 years old aren't quite as brand-conscious as 10-to 14-year-olds and that is where we will focus."

April 15, 2003
www.jjbsports.co.uk

Will JJB Sports go private?

JJB Sports PLC founder and chairman David Whelan on Tuesday revealed he is "seriously considering" taking the company private. Shares in leading sports apparel and equipment chain consequently jumped nearly 20 per cent. Whelan, whose family holds a 39 per cent stake in the company, said he has informed JJB's non-executive directors of his intentions.

The company said in a statement: "The non-executive directors of JJB Sports have been informed by Dave Whelan that he is seriously considering making an offer for the share capital of JJB Sports not already owned by his family. Should an offer be forthcoming a further announcement will be made at that time."

March 26, 2003
www.jjbsports.co.uk

New chief named for JJB Sports

JJB Sports named Tom Knight its new chief executive this week, two months after his predecessor, Duncan Sharpe, committed suicide. Knight joined JJB Sports from Black's Leisure shortly before Mr Duncan hanged himself, takes up the job with immediate effect. Chairman David Whelan, Mr Sharpe's father-in-law, said: "Tom is the right person to deliver the potential of the business."

Mr Knight was previously managing director of Black's Leisure's sport and fashion division, where he led an unsuccessful management buyout attempt as interim chief executive between Simon Bentley's two tenures.

November 28, 2002
www.jjbsports.co.uk

JJB Sports profit down

Sportswear chain JJB Sports, not yet recovered the suicide death of its CEO Duncan Sharpe last Monday, reported a 16.8 per cent year-on-year slide in first-half pre-tax profit to GBP 39.3 million. JJB Sports, which operates more than 430 stores said in a statement same-store sales in the core JJB business rose 0.1 per cent in the first half and slipped 1.1 per cent in the 10 weeks since August 1.

The firm’s performance was not helped by its April acquisition of discount clothing chain TJ Hughes. Excluding Hughes, JJB said its turnover climbed 4.2 per cent in the first half to GBP 362.5m. Chairman David Whelan, father-in-law to the deceased, said in a news release that tough trading conditions "may well become more difficult depending upon the general economic climate".

The Guardian reported this week that the sports retailer said it was considering a management buyout following the dip in the company's fortunes. JJB Sports is reportedly looking into the possibilities and has held talks with venture capital groups to fund a deal to take JJB back into private ownership.

www.jjbsports.co.uk
October 10, 2002

JJB Sports chief found hanged

Duncan Sharpe, chief executive of Britain's biggest sportswear retailer JJB Sports, has been found hanged from a tree, police said today. His death is not being treated as suspicious. JJB Sports issued a statement to the London stock exchange confirming that Mr Sharpe, 43, had died suddenly. Mr Sharpe had been with JJB Sports for 19 years and was the son-in-law of the firm's founder and chairman David Whelan.

JJB was founded in 1971 to acquire the business of a single sports shop in Wigan and grew to become the UK's biggest sportswear group.

www.jjbsports.co.uk
October 8, 2002

JJB Sport conquers Holland

UK’s leading sports retailer JJB Sports is conquering Nothern Europe. After the successful opening of the first overseas store in Rotterdam, the Netherlands, JJB has now opened a new branch in Amsterdam. JJB Sports has moved into the former Marks & Spencerbuilding in the Amsterdam shopping centre Kalverstraat. The store has three floors and covers 4000 m2. The store sells all the major sporting brands; Reebok, Nike, Adidas, Speedo, Quick, Le Coq Sportive etc.

This year the shop is planning to open a fully furnished fitness-school on the floors above the shop. General Manager Frank van Meurs: “There will be a fitness-center, aerobics-studio, Turkish steam bath, and squash hall.”

www.jjdsports.nl |
6 august 2002