Share Dealing
Boost for JJB in battle for survival
Dan Kilpatrick, 05 January 2012
Shares in JJB Sports leapt 14 per cent in early trading as the group announced an improvement in sales over the Christmas period.
The ailing sports goods retailer saw like-for-like sales for the four weeks to Boxing Day increase by 5 per cent, sending the share price up to 6.15p, a 55p increase, at 9.20am.
A strong Christmas means like-for-like sales for the 21 weeks to 26 December were down 7.8 per cent compared with a 17.7 per cent slump for the six months to 31 July.
Last year JJB closed 43 unprofitable stores leaving the group with 195 UK outlets. A further 46 stores remain under review and JJB was also forced to secure £96.5 million from shareholders as it battled for survival during 2011.
CEO Keith Jones said the improved performance was in line with expectations but admitted the group faced a critical 2012.
'Looking ahead, the ongoing credit squeeze on consumers and weaker UK employment numbers creates a tough environment. We continue to implement our turnaround aware of the importance of the periods of the January sales, European football championships and London Olympics,' he said.
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