Sales at Sports Direct International plc, the UK's largest sports retailer, reached £613.3 million ($939 mm) for the 13 weeks ending July 28, up 18.2 percent from the same period in 2012, according to an interim management statement. (1)
Gross profit increased 23.2 percent to £260.1 million ($398 mm).
Sports Retail sales in the 13 week period increased 14.5 percent to £505.3 million ($774 mm), and Sports Retail gross profit increased 20.3 percent to £215.6 million ($330 mm). (1,2)
The company ended the period with UK sports retail space of approximately 4 million square feet, about flat with a year earlier.
Premium Lifestyle sales in the period were up 98.3 percent to £57.1 million ($87 mm) with gross profit increasing 91.7 percent to £23.2m ($36 mm). (2)
The Brands division revenue increased by 4.3 percent to £50.9m ($80 mm), and the corresponding gross profit increased by 7.6 percent to £21.3m ($33 mm).
There has been no material change in the financial position of the Group since the end of the most recent reporting period on 28 April 2013.
UK Sports Retail opened 11 and closed three core stores during the period, including three core relocations. We also opened two non-core stores. European Sports Retail opened three stores – one in Spain and two in Poland.
“As we highlighted at our Preliminary Results in July, the Group has experienced a strong start to the year with trading ahead of management's expectations,” said Dave Forsey, CEO of Sports Direct International plc. “This performance is in part attributable to the historic investment in gross margin; the on-going investment in product range and availability; and continued optimization of our online and in-store product offer.
“We are in the process of integrating our recent acquisitions, including Republic in the UK, Sports Eybl & Sports Experts in Austria and Sportland in the Baltic region. As a result, we continue to target our internal stretch underlying EBITDA target of £310m, excluding the charge for the 2011 Employee Bonus Share Scheme.”
The Group will report its Interim Results on Dec. 12, 2013.
Sports Direct is the UK's leading sports retailer by revenue and operating profit, with approximately 400 stores across the UK. The company also operates in 19 countries in Europe, including Belgium, Austria, Slovenia, Portugal and France. In addition, the Group has an extensive brand portfolio, comprising 28 internationally recognized sport, fashion and lifestyle brands including Dunlop, Slazenger, Everlast, Lonsdale and Karrimor.
Fouinded in 1982, the company is listed on the London Stock Exchange in 2007 and is a constituent of the FTSE 250.
(2) Sales and gross profit of Republic, which was acquired on 28 February 2013, are included in the current period figures, but not the prior period.
