Despite a challenging Christmas JJB looks forward to a stronger 2006

JJB cut prices to boost festive trade, but it said the higher sales over the festive period "more than compensated".

Like-for-like revenues for the six weeks ended 1 January were up 2%.

However, lower profit margins on sales mean annual profits are now set to be between �32m and �36m, lower than earlier forecasts of �40m to �45m.

I believe that JJB will achieve a better performance in the coming financial year than that achieved in the current year Roger Lane-Smith, chairman See JJB's share price

JJB says the retail environment has been very competitive, particularly in clothing and footwear. One of its rivals - Allsports - went into administration in September.

"I am disappointed with the company's trading performance for the 22 weeks ended 1 January, 2006," said chairman Roger Lane-Smith.

Looking ahead, JJB was more upbeat and plans to open more combined health clubs/superstores.

The FIFA World Cup in June should also bring in more revenues.

"I believe that JJB will achieve a better performance in the coming financial year than that achieved in the current year," said Roger Lane-Smith.