Sports Direct gets Olympic boost as sales reach Â£1.09 billion
13 December 2012 | by The Retail Bulletin
Sporting goods retailer Sports Direct enjoyed a record six months to the end of October as group revenues rose 22.5% to reach Â£1.09 billion.
In the 26 week period there was significant growth across all divisions as sales were boosted by the London 2012 Olympic and Paralympic Games. Group underlying EBITDA rose 17.2% to £163.2 million.
The retailer’s online sales increased by 54% and now represent 12.5% of total sports retail sales compared to 9.5% in the first half of 2012.
Sports Direct said its performance was also helped by its continued focus on enhancing the quality of its stores, investing in staff training and expanding its range of products.
The retailer opened stores Hungary, Slovakia, Iceland and the Czech Republic in the period, and also acquired the Flannels Group as part of its Premium Lifestyle division.
Dave Forsey, chief executive officer, said: "The first half has been another record period for Sports Direct with the London 2012 Olympics and Paralympics playing a significant part in the group's strong results. There is no doubt that Team GB's outstanding performance has helped increase the awareness and popularity of sport across the UK, and that we have maintained our position as the consumers' champion.
"The group continues to deliver growth across its divisions and we have maintained our investment in margin, inventory and extra group marketing, while also investing for future growth, particularly in our International and e-commerce divisions.
"As stated in October, the board remains confident of reaching our full year targeted underlying EBITDA of £270 million before the charge for the Bonus Share Schemes."
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