Sports Direct reports 23% profit rise

http://www.guardian.co.uk/business/2013/feb/21/sports-direct-reports-profit-rise

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Britain's biggest sporting goods retailer Sports Direct reported a 23% rise in profits during its Christmas quarter and said it was certain of hitting its full-year target.

The group, which owns SportsDirect.com and Lillywhites stores, as well as brands Slazenger and Dunlop, said that gross profit for the 13 weeks to 27 January, its fiscal third quarter, grew 23% to £244m.

Total sales in the period rose 21% to £589.5m.

While many British retailers have struggled as consumers grapple with rising prices and muted wage growth, heavy discounter Sports Direct has coped well, benefiting from the woes of its rivals, a growing internet presence, highly motivated staff due to a lucrative bonus scheme, and European expansion.

The group is targeting underlying EBITDA (earnings before interest, tax, depreciation and amortisation) for 2013 of £270m, before a charge for bonus share schemes.

Last December the firm said it wanted to grant its billionaire founder Mike Ashley 10 million shares if performance targets were met. The group said it would put the revised payout proposal to shareholders in early 2013, but made no reference to it on Thursday.