Retailer JJB Sports has said it may be heading for a full-year loss of up to £10m after seeing sales fall in “extremely difficult” trading. JJB has been hit by an estimated £15m loss at its Lifestyle division, which includes the Original Shoe Company and Qube chains, in the year to 25 January.
The firm also said like-for-like sales, excluding the Lifestyle division, over the festive period were down 6.8%. While group like-for-like sales – which are sales in stores open for at least one year – had fallen over the five weeks to 11 January, the decline masked contrasting fortunes for different areas of the firm.
JJB said it expected its net debt to be just under £60m by the end of the year, in line with market forecasts. “The banks remain supportive of the company and constructive discussions are continuing with a view to agreeing a basis for providing ongoing support,” it said. JJB said it was now expecting to report a loss of between £5m and £10m for the year to 25 January.
Sir David Jones, executive chairman of JJB, said: “We have started a comprehensive review of the business – including product offer, store layout and operating systems.
“This is an essential part of the plan to re-establish JJB as a major force in the sportswear market. “We are under no illusions that this is a very difficult task in the present retail environment, but we are determined to succeed.”
Shares in JJB fell 2.5 pence, or 18%, to 11.25p in early trade, following the release of the trading update.
Image: JJB sports