Trends & Features

Profits plummet at Sports Direct

Sports Direct has reported a 91 per cent drop in profits for the 52 weeks to April 26, despite total revenues increasing by 8.6 per cent.

Profit for the period was £10.7million, compared to £118.9million in 2008, while group revenue stood at £1.367billion. Sports Direct said it would not be paying a final dividend.

“The second half of the year remained challenging, but we are pleased with these solid full-year results that reflect the resilience and relevance of our flexible business model, focused on the core principles of retailing,” says chief executive Dave Forsey.

“We strengthened our position in our core UK market during the year, grew revenues across both retail and brands divisions, and delivered underlying earnings before interest, taxes, depreciation and amortization in line with our expectations. Our strategy remains the right one for the business and against the tough market conditions.

“The board is confident that our initiatives and hard work across all areas of the group leave us well positioned for the next phase of growth. Accordingly, at current exchange rates, we are expecting underlying EBITDA to be at least £140million this financial year.”

Sports Direct’s net debt at year end was £431.3million. Total brand revenue was up 19.7 per cent to £230.5million. The retailer, which has 359 UK stores, owns brands such as Lonsdale, Everlast, Dunlop and Kangol.

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