Like-for-like sales at retailer JJB Sports fell 1.2% in the 12 weeks to 20 July - but the company remains optimistic that new shop fits will bring a turnaround in the future.

Issuing a trading update to coincide with the company's AGM, JJB said retail revenues had fallen 2% over the period, while health club revenues were up 5.9%.

The latter had been "only slightly affected" by the current economic situation, it added.

Looking forward, JJB said: "The ongoing implementation of the 'new era' and 'retro' fit-outs across selected sites has produced strong increases in like-for-like sales.

"The management believe that the company's future trading position will continue to strengthen as the programme rolls out further."

However, the company stressed that the continued difficult retail environment made the outlook for the remainder of the year "cautious".

Chairman Roger Lane-Smith said: "I am confident that the executive board are taking the right decisions to build a strong foundation for the future of JJB and to get us through what looks like being a very challenging second half to the year."