Sports Direct scores extra points on profits
SHARES in Sports Direct were quick off the mark yesterday after Mike Ashley’s sports retail empire said full-year profits were running ahead expectations.
In an unscheduled update ahead of its annual conference for staff yesterday, Sport Direct said earnings for the year to 26 April would come in at £380m, roughly in line with market expectations.
But underlying profit before tax and earnings per share are both expected to come in above forecasts of around £290m and 36.7 pence per share, “primarily as a result of continued and prudent depreciation policy and lower interest charges”.
Shares rose 3.95 per cent last night to 684.5p yesterday but are still down 3.3 per cent in the year to date.
Sports Direct is due to publish its full-year results on 16 July.
Around 900 staff and third-party suppliers attended the group’s annual meeting yesterday at Newcastle United’s stadium, where they were updated on the performance as well as Sports Direct’s plans to open more combined gym and shop complexes.
Sports Direct has launched 27 cut-price gyms since making a move into the sector in the last year and snapping up more than 18 former LA Fitness sites.
It wants to encourage gym-goers to buy its wares by building gyms alongside of its superstores, with three launched so far in Aintree, St Helens and Keighley.
The group said it was also updating suppliers yesterday on plans for “continued investment in our large format UK city centre stores” which will be stocked with more premium goods ranges compared with its smaller shops.
These include its Glasgow store, which is currently undergoing a 30,000 square feet extension.