Member Article

Sports Direct posts strong growth in sales

Sports Direct, the retailer owned by Mike Ashley, has reported strong sales growth following the closure of rival firm JJB Sports earlier this month.

During the nine weeks up to 28th October, the business increased its sales by 18% and gross profit rose by 21.7% to £167.4m.

Sales in the company’s Premium Lifestyle unit did particularly well, with a 43% improvement like-for-like, while brand division revenues were up 18.9%.

Dave Forsey, the Chief Executive of Sports Direct, said the company had particularly benefitted from the “Back to School” period, and the London Olympic Games.

He said: “Since the end of September trading has remained equally strong and the Board is therefore confident of reaching the full year targeted “super stretch” underlying EBITDA of £270m (before the charge for the bonus share schemes).”

Reports said Sports Direct was in the market for up to 60 of JJB’s closed stores, however an acquisition of only 20 stores was made at the beginning of October for a cash consideration of £23.77m.

The business will report its interim results later in the year.

This was posted in Bdaily's Members' News section by Miranda Dobson .