Sports Direct sees boost from London 2012

Footballs, trainers and hoodies appear to be flying off the shelves at pile-em-high sell-em cheap sports retailer Sports Direct.

In its interim management statement the group says total sales for the 13 weeks ending July 29th were up 25.3% to £519.0m compared to the £414.3m reported in the first quarter of last year. Gross profit increased 20.4% to £211.1m

Among the separate divisions, the sales of the biggest, Sports Retail, increased 19.9% to £441.4m with gross profit up 14.8% to £179.2m.

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Premium Lifestyle sales in the period were £28.8m (prior year: £3.8m) with gross profit of £12.1m against £1.4m in 2011. The big lift was due to the acquisition of a 51% stake in luxury retailer Flannels.

The Brands division saw revenue increase by 15.4% to £48.8m.

During the quarter Sports Retail opened eight and closed three "core" stores.

The European operation opened nine stores: four in Belgium, two in Hungary, one in Slovenia, one in Portugal and one in France. One store in Cyprus and one store in Belgium were closed. Sports Direct has also opened a store in Iceland with a joint venture partner.

Dave Forsey, Sports Direct's Chief Executive said: "Since the end of July trading has remained equally strong, especially within the UK Sports Retail division where sales have also been boosted by the tremendous performance of Team GB at the London Olympics.

"The board therefore continues to target our 2013 "super stretch" underlying EBITDA [earnings before interest, tax depreciation and amortisation] objective of £270m."

BS