SPORTSWEAR retailer JJB Sports yesterday said revenues continued to increase at its health and fitness clubs despite the current economic turmoil.
Like-for-like sales for the group were down 1.2 per cent in the 12 weeks to July 20 – better than the 5.3 per cent decline reported in May and helped by a 5.9 per cent improvement at the clubs.
Store sales were down 2 per cent, compared with 6.5
per cent previously.
The company said store fit-outs, management training and an incentive scheme for staff were helping the retail performance.
It added in a statement: "JJB's health clubs have seen continued positive revenue and gross margins, and have only been slightly affected by the current economic situation."
JJB operates around 50 clubs, with new sites planned across the UK in the next two months.
Panmure Gordon stockbrokers said it could see "clear evidence" of an improved retail performance by the firm, but still downgraded its profit forecasts to reflect the worst retail conditions in 17 years.
Analyst Philip Dorgan said: "
It will take time for the profit opportunity to be delivered, but we believe that the foundations are being laid for strong growth."
He reduced his pre-tax profits forecast by 19 per cent to £30 million for the year to January and by 11 per cent to £39m for the following year.
JJB's fortunes have been impacted by its exposure to the replica kit market and the failure of any of the home nations to qualify for Euro 2008.
The full article contains 266 words and appears in The Scotsman newspaper.
