Member Article

Olympic legacy boosts Sports Direct profits

Profits at international retailer Sports Direct have risen by almost a quarter, according to the company’s half year results.

The firm said its strong results were down to the London Olympic and Paralympic Games, and an increased interest in sport in the UK.

Released on Thursday, the store’s report said profits before tax were up 24.8% to £125.2m, while revenue for the group was up 22.5% in the 26 weeks up to 28th October.

Growth across all the business divisions boosted the company’s results, along with online sales increases of 54%, which now account for 12.5% of all sports retail sales.

Chief executive, Dave Forsey, commented: “The first half has been another record period for Sports Direct with the London 2012 Olympics and Paralympics playing a significant part in the Group’s strong results.

“There is no doubt that Team GB’s outstanding performance has helped increase the awareness and popularity of sport across the UK, and that we have maintained our position as the consumers’ champion.

“The Group continues to deliver growth across its divisions and we have maintained our investment in margin, inventory and extra group marketing, while also investing for future growth, particularly in our International and e-Commerce divisions.

“As stated in October, the Board remains confident of reaching our full year targeted underlying EBITDA of £270m (before the charge for the Bonus Share Schemes).”

This was posted in Bdaily's Members' News section by Miranda Dobson .