JJB to return £40m to shareholders despite sales dip

Sports goods retailer JJB said it had experienced a sluggish start to the Christmas period and like-for-like sales for the 23 weeks to January 4 were down 3.5%

Despite this, JJB’s share price rose 10.5% on the FTSE this afternoon on the back of news that it planned to return £40m (€58m) to shareholders in a tender offer.

The company joined a growing list of British retailers to report lower turnover over the important Christmas period. Rival sportswear firm JD Sports Plc also warned that results would miss forecasts.

JJB said it has suffered from lower sales amid tough competition from discount retailers and supermarkets.

In 2002, it sold its TJ Hughes chain to focus on its main sportswear business. It also abandoned plans for a management buy-out.