JJB Sports dealt the retail sector another blow yesterday after lowering profits expectations in the wake of a tough Christmas.

The group said turnover in the six weeks to January 2 fell by two per cent and by 1.4 per cent when more established stores were included.

The sluggish festive period meant it was forced to bring forward its sale to December 13 and this resulted in a sharp deterioration in margins.

In its second profits warning in five months, JJB said annual profits were expected to be in the range of £61m to £64m, compared with market expectations of about £67m.

City forecasts were scaled back in August after the company warned of a 20 per cent profits shortfall in the wake of poor demand for summer ranges.

Christmas turnover in footwear, replica kit and equipment improved on last year, but JJB said competition in the value-for-money sector put pressure on its clothing range, despite selling five per cent more items than a year earlier.

In the trading period for the 23 weeks to January 2, JJB said total turnover for its stores and health clubs fell 1.6 per cent and by 1.1 per cent on a like-for-like basis.

JJB has 437 outlets, including 189 out-of-town superstores and 146 smaller high street shops. The company said it planned to open 40 sites this year, including many with health clubs attached.