Profits at Sports Direct in shape
SPORTS Direct posted a strong rise in profits over the Christmas quarter yesterday but stayed silent on talks with Debenhams after buying an option in the retailer last month that could see it eventually own a 6.6 per cent stake.
The sports chain controlled by billionaire Mike Ashley said it had “no further comment” on plans with Debenhams, which could see some of Sports Direct’s brands being sold in its stores.
Shares jumped 7.1 per cent yesterday as the retailer posted an 11.2 per cent rise in sales to £655.4m in the 13 weeks to 26 January, with gross profits up 14.6 per cent to £280.7m compared with the same time last year.
Sales at its core sports retail division rose 6.9 per cent while its fashion arm, which has around 160 stores under names including USC and Cruise, reported sales up 53 per cent.
Chief executive Dave Forsey said it was “very confident” of meeting its full-year underlying profit target of £310m before the charge for bonus share schemes.
“Despite tougher comparisons in the period, Sports Retail continues to perform well driven by our on-going focus on exceptional quality, unbeatable value and availability,” Forsey said.
He added that online also performed strongly with online gross profits from its overseas businesses expected to outstrip their UK equivalent by the end of the financial year.