Sports Direct profit up despite weak winter
- Gross profit up 7.6% to GBP346.9m in three months to 25 January
- Group sales up 2.6% to GBP771m
- Sports Retail sales up 2.7% to GBP643.2m
Retailer Sports Direct International overcame a weak winter sports season for its Austrian subsidiary to post increases in gross profit and revenue for the three months to 25 January.
In an interim management statement, the UK company said sports retail sales had increased 2.7% in the period, but premium lifestyle sales fell 0.4% to GBP70.9m, while its brands division saw revenues rise 4.8% to GBP56.9m.
Chief executive Dave Forsey said the results were in line with management expectations, adding: “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.”
He said the company remained “very confident” of achieving its internal target of full-year underlying EBITDA of GBP360m.
Anusha Couttigane, senior consultant at retail analyst Conlumino, said of the results: “With almost 45% of sales translating into profit, it is clear that the value sports retailer’s perpetual investment in margin continues to pay off.”
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