Sports Direct profits up 14.6% in third quarter
Sporting goods retailer Sports Direct has said it is very confident of achieving its full year internal underlying EBITDA target after gross profit surged by 14.6% in its third quarter.
In the 13 weeks to 26 January 2014, group sales rose to £655.4 million from £589.5 million in the previous financial year while gross profit increased to £280.7 million from £244.8 million.
Sports Retail sales in the 13 week period grew by 6.9% to £529.9 million with gross profit climbing 12.9% to £230 million.
Sports Direct, which operates in 19 countries in Europe and has 400 stores in the UK, saw sales at its premium lifestyle division rise by 52.5% to £71.2 million in the period. Gross profit at the division increased by 39.2% to £28.4 million.
Dave Forsey, Sports Direct chief executive, said: "Despite tougher comparisons during the period, Sports Retail continues to perform well driven by our on-going focus on exceptional quality, unbeatable value and availability. Online also performed strongly with non-UK online gross profit contribution expected to be greater than the UK equivalent by the end of this financial year.
"While we retain the ability to invest in margin, inventory and group marketing to deliver long-term sustainable growth, the Board is very confident of achieving at least our full year internal underlying EBITDA target of £310 million, before the charge for the Employee Bonus Share Scheme."
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