Sports Direct International Plc, the parent of Sports World in the U.K., reported group total sales for the nine weeks ending Sept. 26 rose 5.4% to £295 million ($465 mm). Gross profit for the period also increased 5.4% to £117 pounds ($175 mm).
Retail division sales rose 6.9% to £264 million ($416 million), while retail gross profit was £105 million ($165 million), up 6.1%.
Dave Forsey, chief executive, said the company has been pleased “with the continuing strong underlying performance across all our divisions” following the World Cup. “ our group's first half results will be significantly above the corresponding period last year,” Forsey continued, “however, we believe the early part of 2011 will be extremely challenging for all retailers in the UK.”
Sports Direct said it remains comfortable with targeting a full-year underlying EBITDA of £205 million, before a charge for bonus share scheme totaling £10 million. The company also expects net debt as at Oct. 24 to be in the region of £240 million, down from £362 million at the end of Oct. 25, 2009.
In other news, Sports Direct, along with JJB Sports Plc, was recently cleared by the Serious Fraud Office of possible price fixing after a lengthy investigation. In September of last year, JJB Sports and Sports Direct International were raided by the U.K.'s fraud and competition authorities as part of a probe. Sports Direct International Plc said in its own statement the U.K.'s Serious Fraud Office will shortly confirm that its investigation into the two retailers has been completed and no charges will be brought against the companies.
