JJB Sports, the embatttled retailer, warned today that trading this Christmas would be difficult because it hadn't managed to secure as much stock as it would like as sales plunged 52 per cent.

While suppliers had agreed to replenish JJB's empty shelves again after shunning the retailer during the depths of its woes, there was a time lag, JJB said, and it did not expect to be fully stocked until the first quarter of next year.

JJB has been mired in difficulties for much of this year, under pressure from landlords and suppliers and embroiled in controversy over a questionable loan to its chairman Sir David Jones, but a £100 million capital-raising last month appeared to have steadied it.

Like-for-like sales in the 20 weeks to December 13 were 29 per cent down on the same period in 2008. The improving trend in September, October and November went into reverse in December, with underlying sales falling by 32 per cent this month. Overall, sales for the period plunged by 52 per cent.

However, JJB said the recent performance was not comparable because it began its end of year promotion on November 25 last time. This year its sale is scheduled to start on December 26.

Stock levels had started to improve. At the half year, its stockholding was 56 per cent down on the prior year; now it was only 19 per cent down.

The company said: "We do not expect to receive our full stock package until the first quarter of 2010. Consequently, we continue to be cautious about Christmas and New Year and expect that trading within the current environment will remain difficult."

Suppliers boycotted JJB earlier this year on worries it was close to going bust and because they could not secure credit insurance. Although they have now agreed to resume supplies, the time lag is as much as six months.

JJB successfully paid down its borrowings to Bank of Scotland last month with the proceeds of a placing and open offer. Last week it hired Keith Jones, a senior executive at the electricals retailer DSG International, as its new chief executive.

JJB shares lost 4.46 per cent, or 1.25p to 26.75p in morning trading.

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