Sports Direct International plc said it earned a profit of £142 million ($287.3mm) on sales of £317m ($641.3mm) for the 13 weeks ending Jan. 27, 2008.


Although business has remained in line with expectations since Jan. 27, the U.K's largest sporting goods retailer raised its guidance for EBITDA by 7.5 to approximately £148 million from £137.7 million for fiscal 2007-08. The guidance excludes the impact of foreign exchange and exceptional items.

 

The U.K's largest sporting goods retailer, which has been actively investing in prominent European brands since going public in February 2007, said it opened 15 new stores and closed 13 small stores during the period.

 

“Whilst the company recognises the challenges in the retail market and across the economy as a whole, we have a compelling customer proposition and a resilient business model,” said CEO Dave Forsey. “We are confident of meeting current market expectations and will continue to look for opportunities to grow organically, via acquisitions and through partnerships on a global basis.”

The company said that its relationship with China's largest multi-brand apparel retailer, ITAT Group Limited, is developing well, noting that the planned roll out of brands to its more than 700 stores in 275 cities is ahead of schedule. Sports Direct announced Feb. 5 a strategic alliance with ITAT to supply a selection from its portfolio of brands in preparation for the Summer Olympics. Sports Direct's brand portfolio includes Antigua, Carlton, Donnay, Dunlop, Kangol, Karrimor, Lillywhites, Lonsdale, No Fear, Slazenger, Title and Voodoo Dolls.


Sports Direct said it has completed a 35.9 million share buy-back program approved in December at a cost of £38.9 million ($78.1mm). Sports Direct also expects to receive soon approximately $58 million for the  14.6 million shares of Umbro it had not already sold to Nike. The company sold 29 million of its Umbro shares to Nike in December for £56.1 million pounds ($111.8mm)  as part of Nike's acquisition of Umbro.


Group debt decreased from £795.9 million at Oct. 28, 2007 ($1.6Bn) to £555.2 million at Jan 27, 2008 ($1.1Bn). Taking into account the inclusion of marketable securities (available for sale financial assets), the net debt at Jan. 27, 2008 was £396.2m ($785.9mm), down from £431.4m at Oct. 28, 2007 ($885.5mm).


A substantial proportion of the Group’s imports are paid for in US dollars.