Blog: Sporting contrasts
Leonie Barrie | 26 September 2008
The viability of one of the UK’s most popular sports retailers was called into question today after auditors to JJB Sports warned that the company could go under.
Concerns about the firm’s financial situation centre on claims that it breached a banking covenant and may breach others later in the year, and that it has recently negotiated an emergency GBP20m bridging loan facility. The group has rejected the allegations but even so, in a market already jittery by events in the world’s financial sector, shares slumped 40% to 62.75p in early trading this morning.
Compounding the worries was the retailer’s unexpected slump to a GBP9.7m half-year loss from a profit of GBP8.3m a year earlier. Sales were down 5.6% to GBP344.7m. JJB also took the surprise step of scrapping its first-half dividend.
JJB has been trying to reorganise its business, and earlier this year shed 800 jobs and closed down 72 loss-making branches. It is also trying to improve its margin by developing its own brands and adding new types of sports clothing, as well as reducing its dependence on sales of replica football shirts.
Its fortunes compare markedly with those of rival retailer JD Sports, which earlier this week posted a 54% jump in pre-tax profits to GBP12.4m with like-for-like sales up 5.8% for the 26 weeks to 2 August.
JD targets sports and fashion conscious teenagers who are not only largely immune to the effects of the credit crunch, but whose seemingly insatiable appetite for trainers has helped the retailer stay one step ahead.
Continuing our look at what lies ahead for the apparel industry and its supply chain in 2017, the panel of industry experts consulted by just-style last week tackled likely shifts in the sourcing land...
This week our focus turns to first thoughts from a panel of industry experts consulted by just-style on the challenges and opportunities likely to face the apparel supply chain in 2017, with prospects...
Welcome back after the holiday break, and from the team here at just-style I’d like to wish all our readers a happy and prosperous New Year....
Apparel sourcing is a complex process built on a mix of location, logistics, lead-time, price, compliance, risk and reliability. And it's in a constant state of flux as retailers, brands and manufactu...
- Apparel factory auditing is in the firing line
- How US border adjustment tax could affect apparel
- Trump and the apparel industry – Infographic
- "Buy American, Hire American" to guide Trump trade
- Ten retail trends to watch for in 2017
- Brands need to tackle Turkey factory refugee abuse
- Trump signs order to withdraw from TPP
- UK clothing factory workers paid half minimum wage
- Patagonia launching circular economy platform
- Auditing "in need of reinvention" says new project
- Outdoor performance apparel 2016: A broader perspective
- Southeast Asia strategic sourcing review – a focus on Cambodia, Vietnam and Myanmar
- Global apparel markets: product developments and innovations, October 2016
- Anti-odour clothing: fresh fashion for an active lifestyle
- Global market review of lingerie – forecasts to 2022