Encouraging trading at JJB
12 April 2007 09:33
JJB Sports has reported a solid year’s trading, buoyed by the extra demand generated by the Fifa World Cup. In the 52 weeks to January 28th, the sports retailer saw an 8.7% increase in revenue, operating profit up a whopping 28.1% and pre-tax profits rising by 28.8%. The latter two of these figures are taken before the £4 million legal penalty the company suffered over alleged price fixing on replica kits and also do not include costs relating to the closure of its Icon stores. Even with these extra financial burdens included, however, JJB still enjoyed a 13.6% increase in operating profit and a 14.1% jump in pre-tax profit. Over the year like-for-like revenue was up 7.5%.
Commenting today, Roger Lane-Smith, non-executive chairman, said: "I am encouraged by the performance that we have achieved during the 52 weeks to 28 January 2007 with the adjusted operating profit increasing by 28.1 per cent to £46.4 million from £36.2 million. Whilst higher revenue of football replica kit generated by the FIFA World Cup and certain Premiership Team kit launches explains much of the improvement, our 'Serious about sport' stance which helps to differentiate our product offering from that of our competitors, together with the continuing growth from our Leisure Division, have also made a significant contribution.
"The current year will continue to be very competitive. However, we will continue with the fitting-out of our adidas and Nike 'in-store' areas whilst at the same time pushing forward with the expansion of our Leisure Division."
The current financial year has started positively for the retailer, with like-for-like revenue up 3.2% in the nine weeks to April 1st.
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