JJB sales kick on despite World Cup exit

The group reported like-for-like sales growth of 22.3 per cent in the six weeks to July 4 - in line with its forecasts despite the England team being knocked out last month following a 4-1 defeat by Germany.

JJB, which is in the middle of a turnaround plan after a torrid past few years, added that profit margins continued to improve with a rise to 43.9 per cent in the period.

The Wigan-based chain is a major seller of replica kits and has traditionally relied heavily on football tournaments to drive sales.

But it has been widening its focus to all major sporting events to reduce dependence on tournament years.

Today's figures were also achieved in spite of JJB's summer clearance sale starting on July 1, 10 days later than the previous year.

However, the group is benefiting from weak comparatives after it was hit by a stock crisis last year when suppliers became reluctant to deal with the firm as it struggled with financial woes.

JJB said sales since the start of its financial year on February 1 were ahead by 12.1 per cent.

The group is seeing a steady improvement in sales after a management and strategy overhaul, having narrowly staved off administration by agreeing a rescue deal with its landlords.

Its revival plan involves the refurbishment of its store network, as well as investment in its website to reclaim leadership of the 5bn sportswear market.

JJB recently completed a trial refit of its out-of-town Slough store and said it was rolling out the concept to a further four outlets before the autumn.

Slough sales have risen by nine per cent above the company average since the changes, according to JJB, which is hosting an investor day at the revamped store today.

Matthew McEachran, analyst at Singer Capital Markets, said the update suggested JJB "made a much-needed profit in June".

But he added: "The summer sale has only just commenced and it remains to be seen whether the stock that needs to be cleared can be sold without undoing the recent margin progress - in other words there are still a number of risks relating to the turnaround."