Sports Direct on track for £360m profits despite winter slowdown
SPORTS Direct said yesterday it remained “very” confident of achieving at least £360m of full-year underlying earnings after the poor skiing season at its Austrian business hit third quarter sales.
The sportswear retailer, controlled by Newcastle United owner Mike Ashley, said sales for the 13 weeks to 25 January were up 2.6 per cent to £771m.
That was ahead of a 1.5 per cent rise in its second quarter but below a first-half rise of 6.5 per cent.
The group’s key sports retail division posted a lower-than-expected 2.7 per cent rise in sales after weak European winter season for its Austrian arm, which it bought in June 2013 as part of an ambitious expansion across Europe.
The retailer’s brands division increased by 4.8 per cent, but its premium lifestyle arm struggled, with sales down 0.4 per cent.
However gross margins improved and total gross profit increased 7.6 per cent to £346.9m.