Sports Direct International Plc, the U.K.'s biggest sporting-goods
retailer, said higher interest rates and floods in Britain would cause
it to miss estimates for its year ended April 2008.
“The first three months of the current financial year have been
exceptionally difficult with the unprecedented weather conditions
having an immediate impact on sales,” Chief Executive Dave Forsey said
in a statement.
Net income in the year through April 29 fell 40 percent to 37.7 million
pounds after the company paid 56.4 million pounds in performance
bonuses linked to the IPO. Sports Direct said it didn't pay any such
bonuses in the previous year. Full-year sales gained 13 percent to 1.35
billion pounds.
Underlying pretax profits for the past year rose 38.3% to £151m on
revenue up 12.8% to £1.35bn. Ebitda was 191 million pounds in the year
that ended on 29 April and before todays statement analysts were
forecasting 230 million pounds for the current year.
Looking ahead, earnings before interest, tax, depreciation,
amortization and one-time costs may show “limited growth'' this year
from last year's 191 million pounds, which included a one-time gain of
10 million pounds on a property transaction, the company said.
Gross margins widened by 6 percentage points to 44.3 percent in fiscal
2007, Sports Direct said. Net debt at the year-end was 38.1 million
pounds.
Sports Direct has 414 stores in the U.K. primarily under the
Sportsworld name. It also operates Lillywhite's on Piccadilly Circus in
London. The company is the biggest investor in outdoor-gear retailer
Blacks Leisure Plc and this month bought a majority stake in the
competing Field & Trek chain.
Sports Direct also reached an agreement to acquire Everlast, and has
acquired Kangol, Original Shoe Company and Streetwise also this year.
It's stable of brands It also owns brands such as Dunlop, Lonsdale and
Slazenger.
