Sports Direct International, the UK's largest sports retailer, said its first quarter gross profit declined slightly due to tough comparisons against the FIFA World Cup a year ago. It reiterated that it expected to meet its earnings forecasts for the year.

Group sales for its fiscal first quarter ended July 25 inched ahead 0.5 percent to £410 million from £408 million ($655m) a year ago. Gross profit decreased 5.7 percent to £174 million ($278m) from £185 million.

This does not include sales from the new premium lifestyle division.

In line with management's expectations, retail sales in the 13 week period increased 0.8 percent year on year to £368 million (2011: £365m), and retail gross profit decreased 6.6 percent to £156 million (2011: £167m). These results are against tough comparatives as the FIFA World Cup was taking place in the same period last year.  This is illustrated by the UK Retail like-for-like gross contribution for one week decreasing by 40.2 percent.

The Brands division revenue decreased by 2.3 percent to £42 million  (2011: £43m), and the corresponding gross profit was flat at £18 million (2011: £18m).

The firm owns Sports World and Lillywhites stores as well as brands including Slazenger, Lonsdale, Everlast and Dunlop.

During this period, UK Retail has opened nine and closed four core stores, two of which were core relocations. The company also said it opened three and closed four non-core stores.  European retail opened one new store in France, two in the Netherlands and one in Cyprus.

Dave Forsey, Chief Executive of Sports Direct International plc, said: “The Group's underlying performance in the period has been in line with management expectations, while continuing to invest in margin, inventory and extra group marketing.

“Trading has continued to remain in line since the end of July and therefore the Board is confident of reaching the full year targeted underlying EBITDA of £215m (before the charge for the bonus share scheme), notwithstanding the payment of a £2m success fee to Darren Clarke for winning golf's The Open Championship in July.”

The company will report its Interim Results on December 15.