JJB christmas discounting hurts margin
JJB Sports has announced higher revenues over Christmas at the expense of bigger discounts to clear stock.
Total revenue for the 23 weeks to 6 January 2008, including that from both retail stores and health clubs, was 2.2 per cent higher than for the same period last year and includes a like-for-like increase in revenue of 2.2 per cent. For JJB’s retail stores only the increase in total revenue for that period was 1.2 per cent with a like-for-like increase of 1.9% across 384 stores.
Total revenue for the Christmas period of 6 weeks to 6 January 2008 showed an increase of 2.5 per cent, which included a similar increase in like-for-like revenue, but was achieved at the cost of a combined gross margin which was
approximately 400 basis points lower than that achieved in the same six week period last year.
“JJB is continuing its aggressive clearance of non-current stocks over the remaining 3 weeks of the current accounting period and this is expected to further impact the gross margin,” the company said.
