11th Sep 2013 08:47
LONDON (Alliance News) - Sports Direct International PLC Wednesday said it is trading ahead of management expectations, after reporting higher sales in the first quarter, and double-digit growth in its gross profit.
The UK's leading sports retailer by revenue, which is expected to join the FTSE 100 later this month based on its current market capitalisation, said that its gross profit for the 13-week period to July 28 increased 23% to GBP260.1 million.
It said group sales in the 13 weeks ended July 28, rose 18% to GBP613.3 million, compared with GBP519.0 million a year earlier, although it said that the year-earlier period excluded sales and gross profit of Sports Eybl & Sports Experts AG and Republic.
The group said that it is in the process of integrating its recent acquisitions, including Republic in the UK, Sports Eybl & Sports Experts in Austria, and Sportland in the Baltic region.
It said that it is still targeting underlying earnings before interest, taxes, depreciation and amortisation of GBP310 million.
Sports Direct said sales in its premium lifestyle division, which includes fashion retailer USC, almost doubled in the first quarter, with sales of GBP57.1 million, compared with GBP28.8 million a year earlier.
The group said that sports retail was up 15% to GBP505.3 million, compared with GBP441.4 million in the same period a year earlier.
It said that its brands division saw revenue gains of 4.3% to GBP50.9 million in the first quarter.
The group said that in the first quarter, its UK sports retail division opened 11 and closed three core stores, three of which were core relocations. The group also opened two non-core stores. It said its European sports retail sector opened three stores, one in Spain and two in Poland.
"This performance is in part attributable to the historic investment in gross margin; the on-going investment in product range and availability; and continued optimisation of our online and in-store product offer," said Chief Executive Dave Forsey in a statement.
Sports Direct shares were up 2.50 pence to 718.00 pence per share Wednesday morning.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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