Sports Direct posts increase in half year profit
Sports Direct has posted a 160% uplift in half year pre-tax profit to £193.4 million.
In the 26 weeks to 27 October, group revenue climbed by 14% to £2.04 billion while UK retail sales rose by 6.2%. Underlying EBITDA was also up, increasing by 21.8% to £181.2 million.
Revenue at the company’s premium lifestyle division rose by 79.2% mainly due to new Flannels stores and a full period contribution from its recently acquired House of Fraser department store chain.
In a statement, the company said House of Fraser was beginning to see the “green shoots of recovery” as it works to create a “superior shopping experience“ for the consumer.
During the period, Sports Direct acquired the trade and assets of Jack Wills from administration.
Sports Direct said it is continuing to work with the Belgian Tax Authority on the queries it raised regarding VAT. The company maintains that the issue will not lead to any material liabilities.
Commenting on the results, Sports Direct chief executive Mike Ashley said: “I am very pleased with the strong underlying EBITDA growth in the context of the significant challenges facing the highstreet. We remain focused on our elevation strategy, which continues to go from strength to strength, benefiting all stakeholders.”
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