Shock profits blow for JJB Sports

British retailer JJB Sports stunned the markets today by warning that annual profits could be as much as 25% short of forecasts.

The UK’s second-largest sports retailer indicated it was on course for a full-year profits haul of around £3m (€51.4m), sharply lower than the £47m (€69m) pencilled in by some analysts.

Shares touched a two-year low after diving 15% in the wake of the trading update. Sports World owner Sports Direct also saw its shares fall today.

JJB said like-for-like sales fell 4.4% in the 26 weeks to July 29, meaning profits for the first half of its financial year would be £3.5m (€51.4m) short of hopes at around £8m (€11.7m).

The most significant impact on revenues was felt in sales of replica shirts, as the company faced tough comparatives against the World Cup in 2006.