Suitors could be warming up to launch a takeover bid

The warning followed a sluggish Christmas trading period where like-for-like sales fell 1.4% compared with the previous year.

The Wigan-based group said profits were expected to be between �61m and �64m, down from earlier forecasts of �67m.

Last year, JJB rejected a bid approach worth �600m from equity group Cinven.

A company spokesman declined to comment on any ongoing bid speculation surrounding the company.

The latest profit warning was the company's second in the past year.

Sportswear rivalry

Last August, it warned that poor demand for its summer ranges would erode profits by 20%.

Any weakness on the back of today's news could be a buying opportunity, especially if bid/management buyout hopes resurface Investec Securities Check JJB's share price

JJB chairman David Whelan said he was "disappointed" by the Christmas trading figures.

Despite improving sales in footwear, replica kit and sports equipment, competition from discount retailers and supermarkets hit sportswear sales, it said.

But investors were quick to realise that a weak statement could bring potential bidders back out of the woodwork.

But with David Whelan and his family owning just under 40% of JJB's share capital, any offer would depend on whether they feel like selling.

"Any weakness on the back of today's news could be a buying opportunity, especially if bid/management buyout hopes resurface," said Investec Securities in a research note.

Along with M&S, JJB is the latest UK retailer to report disappointing sales over the festive period.

JJB operates from 437 outlets, combining out-of-town superstores and smaller High Street shops.

The company said it planned to expand with 40 new sites in 2005, and many will sit side by side with its health clubs.