Sports Direct reports ‘record’ year as Olympics boosts profits

The sporting goods retailer reported a 40% surge in pre-tax profits to £207.2m while underlying group EBITDA rose 22.1% to £287.9m.

The retailer’s sales rose 20.9% to £2.18bn in the year to June 28. Retail like-for-likes rose 11.2%.

Sports Direct said it had enjoyed “strong growth” in its online sales, which rose 52.1% and now represent 15% of the business’ retail sales.  

Chief executive Dave Forsey said: “2012/13 was a record-breaking year for the group and for British sport. We are pleased that both have continued to be successful this year and that our strategy of being the consumers’ champion continues to reap rewards.

“I am pleased to report a further year of strong profit growth for Sports Direct. The results for the year have benefited from the UEFA European Championships and the London Olympics, but have been achieved in a retail environment that remains challenging.

“The group has grown consistently, and the resilience and flexibility of our business model continues to allow us to offer an unparalleled product range at the best available prices.”

The retailer opened 56 new stores in the UK and Europe in the year as well as acquiring 114 Republic stores out of administration in February.

Forsey said: “Our Premium Lifestyle division has continued to expand. The division offers its customers an enhanced shopping experience, following the previous acquisition of companies including USC, Flannels, Cruise and Van Mildert.”

Forsey warned the retailer will be up against tough comparisons in 2013/14 as it is a non-tournament year in a number of major sports.

The retailer also revealed it has shelved plans for its Super-Stretch Executive Bonus Share Scheme that would have remunerated owner Mike Ashley.