19th Feb 2015 07:58
LONDON (Alliance News) - Sports Direct International PLC Thursday reported a 2.6% rise in group sales for the third quarter, and a 7.6% increase in gross profit.
Sports Direct, the UK's biggest sporting goods retailer by revenue, said it is "very confident" of achieving its full-year internal underlying earnings before interest, taxes, depreciation and amortisation target of GBP360 million. That would exclude charges for its Employee Bonus Share Schemes, it said.
Sports Direct said group sales for the 13 weeks to January 25 were up 2.6% at GBP771.0 million, while its gross profit increased 7.6% to GBP346.9 million from GBP322.3 million last year.
Profits were again driven by its sports retail business, where sales increased 2.7% in the period to GBP643.2 million, and gross profit rose 9.4% to GBP297.2 million.
Its Brands division, which includes Sports Direct's portfolio of brands such as Lonsdale, Dunlop and Everlast, saw revenue increase 4.8% to GBP56.9 million, while gross profit fell by 0.9% to GBP22.1 million.
Premium Lifestyle sales in the period decreased 0.4% to GBP70.9 million, with a 2.8% fall in gross profit to GBP27.6 million.
"Trading has been in line with management's expectations. Within Sports Retail we continue to focus on upgrading our store portfolio and integrating our business in Austria where a weak Winter sports season across Europe has proved challenging," said Chief Executive Dave Forsey in a statement.
"We retain the ability to invest in margin, inventory and group marketing to deliver long term sustainable growth," he added.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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