If you are new to the book the first Article you will read is all about the poor financial performance of Sports Direct following its stock market launch in February 2007 when the share price was set at 300p. Sadly it has since declined to stand today at a little over 100p. The shareholders have taken a severe hit to their personal wealth as a result of the problems at the business. According to the financial press their problems could grow as they face pressure from the other large UK sportswear chain JJB Sports. The company has just announced plans to adopt a very different corporate strategy to its rival by rejecting the cut-price model being used by Mike Ashley's Sports Direct business. JJB Sports aims to go for the more upmarket sporting goods market aiming to cater for the needs of specialist sports like athletics ahead of the 2012 London Olympics. JJB Sports is also planning to appoint a new chief executive to work alongside the company's executive chairman, Sir David Jones. JJB Sport's share price is still down by some 68% this year but they have recovered recently on hopes of a revival in the prospects for the business in the near future.
Sep 25, 2009
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3 comments:
In more recent activities concerning JJB sports, one of JJB sports largest shareholder, namely Crystal Amber, have sold more than half of its shares, making a profit of £2.2 million. Crystal Amber further intends to subscribe ‘to the companies forthcoming £100m share placing’, therefore playing a further role in JJB sports.
Although JJB sports share price has gone down considerably this year it seems to be recovering as its current share price is 30.50p. The 52 week range is 2.19-38.51, showing that the current price is doing well at the moment compared to over the last year.
FT article: http://www.ft.com/cms/s/0/9291a202-bcd1-11de-a7ec-00144feab49a.html
Thanks for your excellent update!
Kevin
That is really good news for JJB who in recent years have faced tough competition from Sports Direct. In the last two years alone they have lost over 45 of their stores most of them being aquired by Sports Direct. However in the last week JJB have announced a loss of £42.9m and their share price fell by 8%. They are also being investigated for a possible retail cartel with Sports Direct themselves so it doesn't look good for JJB whose share price fell further by 2% today!
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