Sports Direct International, the UK's leading sports retailer, reported sales for its quarter ended Jan. 25 grew 2.6 percent to £771.0 million ($1.19 bn). Gross margins improved to 45.0 percent from 42.9 percent.
Sports Retail sales in the thirteen weeks increased 2.7 percent to £643.2 million ($991.1 mm). The segment includes 420 sports stores across the U.K. (excluding Northern Ireland), of which 400 operated under Sportsdirect.com.
In its Premium Lifestyle retail segment, including the Flannels, Cruise, USC and Van Mildert banners, revenues decreased 0.4 percent to £70.9 million ($109.25 mm). The Brands division – Including Dunlop, Slazenger, Everlast and Lonsdale expanded 4.8 percent to £56.9 million ($87.67mm).
Sport Direct didn’t change its outlook for fiscal year ending at the close of April.
“As we highlighted at our interim results in December, trading has been in line with management's expectations,” said Dave Forsey, CEO. “Within Sports Retail we continue to focus on upgrading our store portfolio and integrating our business in Austria where a weak Winter sports season across Europe has proved challenging.
“While we retain the ability to invest in margin, inventory and group marketing to deliver long term sustainable growth, the Board is very confident of achieving at least our full year internal underlying EBITDA target of £360m, before the charge for the Employee Bonus Share Schemes.”
