JJB shares tumble on trading warning
Updated: 11:11 EDT, 26 May 2005
SHARES in sports retailer JJB slumped this afternoon after the company warned that trading conditions were deteriorating.
Shares slipped 14½p to 185p after the company said that like-for-like sales had slumped 7.7% in the 16 weeks to 22 May.
At the time of its annual results in April the company had said it was experiencing difficult trading conditions, which it said had worsened in today's update.
Chairman David Whelan said: 'In my statement of 13 April 2005, I said that trading conditions were as difficult as any that I had known for a number of years.
'I believe that these conditions will continue to deteriorate with the impact of higher interest rates and taxes, which reduce disposable incomes, and that the low level of confidence amongst consumers is going to take some time to reverse.'
JJB is the latest retailer to warn of struggling sales on a beleaguered High Street, with Next, Marks & Spencer, French Connection and Boots all recently admitting sales had slipped.
JJB reported pre-tax profit before exceptionals of £63.3m for the year to the end of January, down 28% from the previous year.
Whelan called on the Bank of England to reduce the base rate from its current level of 4.75% and the Government not to introduce further indirect tax increases. He added the company would continue to monitor all costs in the light of falling turnover.
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