Sports Direct, the U.K. discount sporting goods chain, has acquired a
3.87% stake in Umbro, and also reiterated guidance for the current year.
Dave Forsey, Sports Direct's chief executive, said that the group,
which runs the Sports World and Lillywhites chains, was sticking by
guidance given in July when it forecast “limited” growth in earnings
this year.
In a statement ahead of the retailer's annual meeting, the company
revealed that total sales in the 13 weeks through July 29 were £335
million (US$680 million) with gross profit at £149 million (US$302 million). It did not provide year-ago comparative figures.
The retailer had issued two previous profit warnings this year, and traders were worried about a third.
Forsey reiterated the wet weather this summer had had a “material”
effect on business but added: “Since the end of July trading has
improved, but market conditions remain difficult.
“At the time of the announcement of its preliminary results on 24
July, the company stated that its pre-exceptional ebitda for 2007-08
should show limited growth from the results reported in the year to
April 29, 2007. We remain of that view.”
He added: “We remain committed to the strategy of improving retail
margins, driving efficiencies and growth through acquisitions, opening
new retail space and licensing opportunities.”
Separately, sports shirt manufacturer Umbro revealed that Sports
Direct has acquired a 3.87pc stake in the company. Umbro said that
Sports Direct had the stake as of August 6. Sports Direct made no
comment on the move.
Sports Direct,
which went public in January of this year, also has acquired a 10%
stake in Amer Group this year, and recently acquired a 60% stake in
Field and Trek, an outdoor goods retailer, with an option to buy the
other 40 percent.
