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JJB Sports has confirmed an expected slump in profits, with the sports retailer blaming tough comparatives with the 2006 football World Cup for the fall.

In a statement the company revealed that its pre-tax profits, for the 26 weeks to July 29th, dropped by 38.3 per cent to £11.2 million. That compared to a pre-tax profit of £18.2 million for the corresponding period of 2006.

JJB said total revenues across its stores decreased by 6.2 per cent on the comparative period. But it stressed that store revenues excluding replica products decreased by just 1.3 per cent.

The company had anticipated the profit fall, warning in a trading update earlier this month that its performance was likely to be lacking.

Commenting on the results JJB's non-executive chairman Roger Lane-Smith admitted: "Although we expected a fall in profits with no major football tournament this year, these results are still disappointing."

Nonetheless JJB revealed that its combined gross margin over the six months to the end of July was 280 basis points higher than for the corresponding period in 2006. The company said the improvement was partly achieved as a result of the less competitive state of the retail sports market.

Meanwhile the company has said that it could materially benefit from the 2008 Euro Championship if England and Scotland's football teams qualify for the tournament. But despite the potential presented by the games, JJB says it intends to reduce its dependency on major football tournaments for its sales.

The retailer says it is "re-energising" its stores and incorporating strong product ranges from key brands, along with improving its own brand offering.

In addition JJB has stressed that its leisure division is continuing to expand and is now contributing "substantially" to overall group revenues.

Revenue across JJB's health clubs increased by 21.2 per cent to £33.1 million over the first-half of the year, while the company plans to open a further five combined health clubs and superstores over the second-half.