JJB Sports today reported a 2% slump in sales at its 425 stores and warned things may not get any better before the end of the year.

The firm has been rocked by the slowdown in consumer spending as shoppers tighten their belts and stop splashing out on sports kit and football shirts.

It has also been hit by the failure of Umbro to deliver new replica football kits on time. The failure of the England team to qualify for Euro 2008 and the subsequent decline in sales of shirts bearing the three lions, it was another unwanted blow.

Chairman Roger Lane-Smith said: "The management remain cautious about the outlook for the remainder of 2008 in view of the difficult retail environment. I am confident that the board are taking the right decisions to build a strong foundation for the future of JJB and to get us through what looks like being a very challenging second half to the year."

The firm closed 72 stores and slashed 800 jobs earlier this year as it battled the slowdown. However, its health clubs are faring better with fitness fanatics still going to the gym despite the squeeze on finances. JJB said the health clubs have "only been slightly affected by the current economic situation".

JJB shares today fell back 3¾p to 86¼p.