Retail news : UK, Sports Direct's 6M Revenues Climb 24 Percent

Sports Direct, the U.K. sporting goods chain, reported revenue grew 23.5 percent in the six months ended Oct. 27, to £1.34 billion ($2.2 bn). Profit before taxes improved 18.3 percent to £143.1 million (233.9 mm).

Highlights of the quarter included:

• Strong group performance - ahead of management's expectations
• European expansion continues - acquisitions in Austria ("EAG") and the Baltic region ("SIG")
• Group now active in 19 European countries
• Group gross profit increased by 29.2 percent to £579.8m
• Group gross margin increased by 190 basis points to 43.1 percent
• Strong underlying free cash flow generation of £147m(3)
• Continued investment in inventory and acquisitions while maintaining a strong balance sheet

Sports Retail

• Online sales growth of 43.0 percent, now contributes 15.5 percent of total Sports Retail sales(4) (FY13 H1: 12.5 percent)
• International Sports Stores sales growth of 30.8 percent, excluding acquisition of EAG and SIG

Premium Lifestyle

• 43 former Republic stores converted to the USC fascia
• Point of sale successfully integrated and new ecommerce platforms launched

Brands

• Everlast, Dunlop and Slazenger continue to drive growth in licensing income
• 42 new license agreements signed with annual minimum guarantees of $38m over the contract period

Dave Forsey, Chief Executive of Sports Direct International plc said:

"We have delivered another strong performance reflecting our continued focus on providing customers with exceptional quality and unbeatable value - reinforcing our position as the consumer champion. The growth in group revenues and EBITDA has been ahead of expectations and achieved against a tough comparative that included the UEFA European Championships and the London 2012 Olympics.

"The performance of Sports Retail is particularly pleasing with significant growth in the UK, Europe and online. The Group’s expansion in Europe has also continued with acquisitions in Austria and the Baltic states. The integration of these acquisitions is progressing and we continue to look for further opportunities across Europe.

"While we retain the ability to invest in margin, inventory and group marketing to deliver long-term sustainable growth, the Board is confident of achieving at least our full year internal underlying EBITDA target of £310m, before the charge for the Employee Bonus Share Scheme."

By press release.


More news about Sports Direct ? Use the searche engine at the right top.