At last, festive results bring some good news for troubled high street

JJB Sports, which last year came close to collapse, told investors that trading had improved in its second half with like-for-like sales up 5 per cent in the four weeks to Boxing Day.

Crucially for a company that has been forced to issue a long line of profit warnings, gross margins have also risen.

It described the performance as broadly in line with expectations, but pointed out that trading during the January sales, European football championships and London Olympics would be key to its revival in the year ahead. Last year, the group was forced to tap shareholders, who include billionaire Bill Gates, for almost £100 million, close a string of unprofitable stores and place others under review in a bid to stave off administration.

News of the improved performance at JJB came as Clinton Cards posted a rise in its Christmas sales. The greetings and gift card chain, which operates 630 Clintons stores and 141 Birthdays outlets, has been on the retail critical list after plunging to a £10.7m annual loss amid falling sales.

Yesterday’s trading update showed that sales at stores open for more than a year had risen by 0.4 per cent in the five weeks to New Year’s Day. That compares with a fall of 2.4 per cent in the 16 weeks to 20 November.

The rebound highlights the impact of a change in strategy implemented by Darcy Willson-Rymer, who took up the reins of chief executive in October.

The former Starbucks executive said his firm’s “single-minded focus” on the customer helped deliver improved trading over the crucial festive period.

He added: “There is clearly more work to be done and I am looking at this within my strategic review.

“Despite a tough retail climate, we remain in line with the board’s expectations.”

The core Clintons brand enjoyed a 0.8 per cent rise in sales over the five weeks, but there was a 2.7 per cent decline at Birthdays, where the Irish business was put into liquidation in March.

With shoppers’ disposable incomes squeezed by rising prices, muted wages growth and government austerity measures, UK retailers faced the toughest trading conditions since 2008 at Christmas.

Fashion stalwart Next kicked off the festive reporting season on Wednesday with disappointing figures for its high street stores. The overall picture was boosted by strong growth online.

At the same time, John Lewis flagged healthy year-on-year growth and yesterday revealed that its Waitrose supermarket arm had delivered a strong festive performance both in-store and online.

The grocery business, which has 271 shops across the UK, said like-for-like sales in December increased 3.8 per cent on last year, after recording its highest-ever sales for a single week in the run-up to Christmas.

Despite signs of a turnaround at JJB, analysts questioned whether the pace could be maintained.

Freddie George, retail analyst at brokerage Seymour Pierce, said the update was “against very easy comparatives” and the company was “running out of time to turn this business around”