Sales up but challenges ahead for Sports Direct
The chief executive of Mansfield-based Sports Direct is playing down the company’s £295m sales figures for the nine weeks to 26 September. Dave Forsey said he expects the early part of 2011 to be “extremely challenging” for all UK retailers.
Forsey made the comments through the sports clothing retailer’s trading update this morning.
Group total sales for the nine weeks were up 5.4 per cent from the comparable 2009 period. Gross profit also rose by 5.4 per cent to £117m.
Forsey said: "Following the first quarter of our financial year, which included the World Cup tournament, we remain pleased with the continuing strong underlying performance across all our divisions.
"In light of the above, our group's first half results will be significantly above the corresponding period last year, however we believe the early part of 2011 will be extremely challenging for all retailers in the UK. The board remains comfortable with targeting a full year underlying EBITDA of £205m before the £10m charge for the bonus share scheme.”
Forsey added that the company would implement a new scheme covering the next two financial years, 2012 which is a non tournament year and 2013 which includes the London Olympics.
