Trends & Features

Sports Direct group revenue tops £1.5 billion

Sports Direct’s chief executive said the success of the company’s employee bonus share scheme was key to its 10.2 per cent increase in group revenue for the year ended April 24.

Group revenue hit £1,599 million, while profit before tax stood at £118.8 million.

The group’s gross margin increased from 40.6 per cent to 41.2 per cent.

As a result of hitting its underlying EBITDA (earnings before interest, taxes, depreciation and amortization) targets, around 2,000 of Sports Direct’s 17,000 employees will receive share payouts in both 2012 and 2013.

“This has been an excellent year of growth for the group in what has been a challenging retail environment,” says Dave Forsey, Sports Direct’s chief executive.

“The strength of our business model means we are very well positioned for the challenges and targets for the future.

“Our progress since the year end is in line with management expectations and we are confident of reaching our current year target of underlying EBITDA.”

Other highlights of the retailer’s preliminary results:

• Online revenue increased 97.1 per cent from £48.6 million to £95.7 million, which represents 7.7 per cent of total UK retail sales.

• International retail sales were up 10.3 per cent to £132.3 million.

• Brands total revenue fell 1.5 per cent to £187.7 million, driven by Sports Direct’s strategy to change some of its sales from wholesale to licensing.

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