UK: JJB Sports warns of poor sales
UK sports wear retailer JJB Sports today (9 July) admitted trading has fallen below expectations due to weak demand for replica football kits during the European Championships and poor weather.
It said group like-for-like sales declined 8% over the 22 weeks ended 8 July.
The company's share price dropped on the news, down 28.93% to 7p a share at 10:26 BST today.
In a year marked by sporting events, the drop in sales is worrying, said analysts.
"Considering that this year is one of the most significant in the sporting calendar for a generation, JJB's numbers are extremely disappointing - all the more so as they demonstrate a marked deterioration in trading since the last update," said Conlumino analyst Neil Saunders.
He said the the muted demand for replica football kits during Euro 2012 is worrying, because if JJB is overstocked, "this may well have a negative impact on margins as discounting will now be required to shift product".
JJB also announced that Robert Corliss will become deputy chairman with responsibility for accelerating the turnaround of the business. He will then become chairman on 1 September, succeeding Mike McTighe.
JJB said Corliss has successfully invested in and led a variety of situations including buyouts, turnarounds, divestitures, and start-ups. He has been a director and executive committee member of the National Retail Federation (NRF), a director of the World Federation of the Sporting Goods Industry, chairman of the Committee of International Sports Organizations and a director of both the American Running Association and the Sporting Goods Manufacturers Association.
"I am excited that we have attracted someone of Bob's calibre and experience to lead the company through the next phase of its turnaround," said McTighe. "His deep US and European sports retailing background is exactly what we require right now."
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