In an interim statement relating to the period from October 29 to March 12, the retailer reported total group sales for the 13 weeks to the end of January 27 were£317 million and group gross profit was£142 million. 15 new stores opened in the period and 13 small stores closed.
The sports retailer said that, since January 27, trading has remained “in-line with management’s expectations”.
Sports Direct added that it was confident of meeting revised market consensus forecasts during the year. Expectations for underlying EBITDA – before foreign exchange and exceptional items – for the full 2007/2008 year increased to£148 million.
Group debt rose from£795.9 million at October 28 to£555.2 million by January 27. Net debt was£396.2 million, down from£431.4 million on October 28.
During the interim period, Sports Direct announced a strategic alliance in China with ITAT Group to supply merchandise to the group, which operates the largest network of multi-brand apparel retail chains in the country. The roll-out is ahead of schedule.
Sports Direct also sold it interest in Original Shoe Company to JJB Sports for£5 million and sold£29 million of shares in Umbro to Nike for£56.1 million in December.
In the same month Sports Dircet approved a share buy-back programme and has since purchased shares at total cost of£38.9 million.
Sports Direct chief executive Dave Forsey said: “While the Company recognises the challenges in the retail market and across the economy as a whole, we have a compelling customer proposition and a resilient business model. We are confident of meeting current market expectations and will continue to look for opportunities to grow organically, via acquisitions and through partnerships on a global basis.”
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