Sports Direct in profit rise
FOOTBALL fans buying personalised shirts and other World Cup gear, helped to fuel a 50 per cent profit rise for Sports Direct.
The retailer celebrated its strongest-ever trading on the day of the England versus USA game.
The company said World Cup demand helped it maintain the sales trends that saw post and annual pre-tax-profit to £102.1m for the year to April.
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Direct, which owns Sports World and Lillywhites in Piccadilly Circus as well as brands including Slazenger, Lonsdale and Dunlop said it was “operationally stronger than ever”.
Sports Direct – which is 71 per cent owned by Newcastle United owner Mike Ashley – said it was aiming for underlying earnings of £195?m for this financial year.
Chief executive Dave Forsey said: “Looking ahead, we are confident that improved staff training and new in-store merchandising areas put us in a strong position for the next phase of our growth.”
But the company warned that some of the gains would be offset by England’s early exit from the World Cup, with leftover stock piled high.
It added: “The negative impact of clearing the excess stock will offset some of the gains.”
The overall earnings rise may activate the company’s bonus scheme, the company said.
Under the system, set up last year, eligible staff will be in line for another shares windfall worth 75 per cent of base pay.
The firm fared better than most UK retailers during the recession thanks to its discount pricing and the weakness of its main rival JJB Sports. Net debt has been cut by 27.7 per cent to £311.9m.
In March this year, Blacks Leisure dismissed a £26m takeover approach from Sports Direct.