Sales growth speeds up at Sports Direct

High street sportswear retailer Sports Direct saw sales growth accelerate in the third quarter and says that it will be reviewing its dividend policy as a result.

Group sales (not including the recently-acquired premium lifestyle division) for the 13 weeks ended January 22nd rose 9.1% from £415.9m to £453.8m, compared with the 8.4% increase seen in the first half.

Retail sales jumped 10.2% to £408.6m, while the Brands divisions saw sales fall 1.7% to £45.2m.

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Gross profit was 10.2% higher at £184.4m, compared with £167.3m the year before. Retail gross profit rose 10.7% to £165.0m, while Brands gross profits increased by 7.8% to £19.4m.

"The group has had a strong third quarter and experienced significant growth in its ecommerce division. Underlying performance in the period, particularly since December, has outperformed management's expectations. Trading has continued to remain strong since the end of January and we shall continue to invest in margin, inventory and extra group marketing," according to Chief Executive Dave Forsey.

Sports Direct is now certain that the full-year underlying EBITDA (earnings before interest, tax, depreciation and amortisation) target for £215m, which does not include the charge for the bonus share scheme, will be reached.

"In light of this strong performance, the board will be reviewing the group's dividend policy at the end of this financial year," Forsey added.

BC