Profits up at Sports Direct despite England’s World Cup disappointment
Mike Ashley’s retail firm Sports Direct have reported an increase in group sales of 12.2% to £711.2 million in the 13 weeks ending 27th July.
The group’s Sports Retail sales in the 13 week period increased 16.3% to £611.8 million, and Sports Retail gross profit increased 15.8% to £260.4 million.
Group sales for the 13 weeks ending 27 July 2014 were up 12.2% to £711.2 million and gross profit increased 11.8% to £301.2 million, despite England’s early exit from the World Cup.
Sales in the group’s Premium Lifestyle division in the period decreased 8.8% to £52.1 million, with gross profit decreasing 11.6% to £20.5m.
The group reported an increase in revenue of 7.1% to £47.3 million of its Brands division.
As a result, the corresponding gross profit of this division decreased by 4.7% to £20 million.
Dave Forsey, chief executive of Sports Direct International plc, said: “As we highlighted at our preliminary results in July, recent trading, including the period since 27 July, has been in line with management’s expectations with some stronger weeks offset by England’s disappointing World Cup performance. Within Sports Retail we continue to focus on upgrading our store portfolio and integrating recent acquisitions, including Eybl and Sports Experts in Austria.
“Consistent with previous guidance we continue to target underlying EBITDA (before share scheme costs) of £360 million for the current period.”