AGM Statement

John David Group (The) PLC
06 August 2003

6 August 2003


                  THE JOHN DAVID GROUP PLC ('JD', the 'Group')
                           AGM TRADING STATEMENT


At tomorrow's Annual General Meeting of JD, Roger Best, Chairman, will make the
following statement:


'Following a period of mixed trading, it is now anticipated that Group profits
will be significantly below market expectations for the financial year ending 31
January 2004. Although operational performance will improve in the second half
of the financial year ending 31 January 2004 ('H2'), the Board believes that it
is unlikely that the Group will recover the shortfall experienced in the first
half of the financial year ending 31 January 2004 ('H1').


In the announcement of the Group's preliminary results on 1 May 2003, we
reported that trading in the second part of our 10 month period ended 31 January
2003 had been disappointing but that the Group's trading had improved in the
seven weeks up to 1 May 2003. However, despite the promising Easter period, like
for like sales fell back sharply in May and overall like for like sales across
the Group for the six months ended 31 July 2003 were approximately 3% down,
comprising a 0.5% fall in the JD Sports division and a 6% fall in the First
Sport division. The earlier 2003 summer sales period provided a boost to sales
(up approximately 3% for the Group like for like during the sales period), but
this was not sufficient to compensate for the lower gross margin. For the six
months ended 31 July 2003, our gross margin was approximately 1.5% lower than
the same period in 2002 due to a combination of the earlier summer sale and the
anticipated impact of lower margin in the First Sport division. Net sales for H1
totaled approximately £210m, with gross margin approximately 45.5%.


As discussed in our preliminary results, we have been undertaking a major
conversion programme of First Sport stores to JD Sports stores. To date, we have
converted 102 stores and, in most cases, performance has improved following
conversion.  However, an unbalanced product offer and slow replenishment
resulting from the continuing disruption caused by the acquisition, have
affected performance in many stores. A stronger product offering and faster
replenishment is expected to help improve performance in the second half.


The store rationalisation programme discussed in our preliminary results is
targeted at all unprofitable stores. We have now completed the disposal of 15
First Sport stores. A further 18 disposals are planned for H2 and 20 for the
year ending 2004/05.


The store closure programme will also help to reduce the negative impact of
cross-over locations arising from the First Sport acquisition, an issue which is
also being addressed through the planned conversion of stores to other fascias
within the Group.



THE FUTURE


Now that the integration of First Sport is nearing completion, we will no longer
report on JD Sports and First Sport as separate divisions. We have reorganised
the business into two operating units - Sports Fascias and Fashion Fascias. Both
businesses have their own management and dedicated buying, merchandising, retail
and marketing teams. Barry Bown, Chief Executive, has taken on the role of
leading the larger Sports Fascias business and new appointee Richard Percival
will lead the Fashion Fascias business.


Following my appointment in May, the Board initiated independent research
through Brand Vista which has helped us to evaluate our current fascias. As a
result we are in the process of redefining our fascias to ensure that we have
the product and marketing relevant to our target consumer.


Today, we have 333 Sports Fascia stores, 257 of which are JD Sports stores. This
division will move forward strongly under the JD banner, with a clear sports
fashion positioning, quite distinct from the sports value proposition of other
retailers. 4 new stores are planned for H2 including Birmingham Bullring,
Beckton, Greenwich and Wandsworth.


Size? will form a major part of our growth in the Fashion Fascias business where
we currently have 47 stores. Our existing 9 Size? stores are performing 8% ahead
like for like, and a new store is now planned for this year in Leeds with
conversions in Bluewater, Newcastle and Brent Cross. Size? is ideally positioned
to take advantage of  current trends in casual leisurewear and is a proven
profitable concept. Athleisure and Open will be the other key drivers within the
Fashion Fascias business and a new 24,000sq ft Open store on Buchanan Street,
Glasgow will open in time for Christmas trading.


The plan is now in place for the realignment of the store portfolio, for the
reinvigoration of our product offering and marketing and for improved operating
efficiencies. It will take a further eighteen months for the full benefit to
come through, but both management and the Board is confident that the plan will
lead to a stronger, better balanced Group and a leading position in both the
sports fashion and casual fashion markets that we target. During this period,
the Board believes that the reorganization and the other operational changes
detailed above will make incremental improvements to the performance of the
Group.'


The interim results are expected to be announced on 9 October 2003.


For further information, please contact:


The John David Group Plc                     0161 767 1000

Roger Best, Chairman

Malcolm Blackhurst, Finance Director

Hogarth Partnership Limited                  020 7357 9477

Andrew Jaques

Tom Leatherbarrow


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