Sports Direct sees double-digit profit growth as revenues remain stable

Retail group Sports Direct International Plc saw double-digit profit growth in 2017/18.

The company generated a pre-tax profit of £152.9m in the 12 months to April 29, up 34.5% from £113.7m the year previous.

Groupwide revenues remained stable during the period, rising 3.5% from £3.25bn in 2017 to £3.36bn this year.

UK Sports Retail was still Sports Direct’s biggest sales segment. It accounted for £2.18bn of the total – 2% down on the £2.23bn recorded in 2017.

While the firm’s Rest of World Retail category made up just £192.4m of the total revenues, overseas sales saw the highest year-on-year growth, skyrocketing 594.6%

Sports Direct’s UK store network, meanwhile, shrank by a net 19 shops. The company opened 13 UK stores and closed 32 in its latest fiscal year, bringing its total to 494.

Chief exec Mike Ashley said: “I am particularly pleased that Sports Direct has not only been named among the 10 companies with the most improved reputation in the UK, but also that we were ranked among the top five in an index of international retailers.

“I’m pleased that our Underlying EBITDA has come in at the top end of our expected range at £306.1m as we indicated this time last year, and also that the underlying profit after tax has increased substantially to £104.9m.”

Michael Murray, the firm’s head of elevation, commented: “During FY18, we have seen growth in Underlying EBITDA of 12.2%. The elevation strategy continues to exceed expectations.

“As the property pipeline and brand relationships accelerate, we are confident in achieving between a 5% and 15% improvement in Underlying EBITDA for the coming financial period.”

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