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Sales collapse at JJB Sports

Wednesday 07 October 1998 18:02 EDT
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SHARES IN JJB Sports slumped by 27 per cent to a 12-month low yesterday after the UK's largest sports retailer revealed that a shortage of products led to a collapse in sales at recently-acquired Sports Division.

The company said the former management of Sports Division, bought in July for pounds 292m, misread the market and bought up to 20 per cent less stock than needed. This led to a 15 per cent fall in like-for-like sales in August and September.

The core business posted a 4 per cent fall due to poor weather and waning consumer confidence. In the six months to July, JJB reported a 16 per cent rise in profits to pounds 16.5m on sales up 31 per cent to pounds 115.6m.

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