Interim Management Statement

RNS Number : 4800N

Sports Direct International Plc

18 February 2009

 



18 February 2009

Sports Direct International plc 

Interim Management Statement

Sports Direct International plc ("the Group" or "the Company") announces its Interim Management Statement relating to the period from 27 October 2008 to 17 February 2009. 

Group total sales for the 13 weeks ending 25 January 2009 were 12.0% higher at £355m (2008: £317m) and gross profit was higher at £143m (2008: £142m). During this period, the UK retail and international retail divisions opened 11 and 1 new stores respectively, and closed 17 and 1 smaller stores respectively. Sales in the UK retail division were ahead of our expectations although gross margin was impacted by the weaker GBP against the US Dollar over the period as a substantial proportion of the Group's imports are paid for in US Dollars. The Group's international operations account for their results in both US Dollars and Euros which, on translation, has to a limited extent, benefited the Group on account of GBP weakness.   

The impact on the Group of currency movements is managed through holdings of currency and the use of forward fixed-rate dollar purchase and euro sales contracts. The overall currency position for the year (net of realised and unrealised gains and losses) remains in profit.

The Company announced at its interim results on 17 December 2008 that despite the extremely difficult economic situation and trading environment, the Board remained comfortable with underlying EBITDA market expectations for the full year 2009 of £135m. This view remains unchanged.

Dave Forsey, Chief Executive Officer of Sports Direct International plc said: 

“The Board is pleased with the Group’s trading performance during the quarter, particularly with the UK retail division which has benefitted from specific management focus.

"The weaker pound has had an adverse impact on margin in the period.  However we continue to offer great value to our customers, while ensuring effective control of stock levels and costs, which we believe will continue to position the business well against the challenging market conditions."  

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For further information, please contact:

Sports Direct International plc                     T. 087 0333 9400

Dave Forsey, Chief Executive

Bob Mellors, Group Finance Director

Financial Dynamics                                        T. 020 7831 3113

Jonathon Brill / Caroline Stewart / Alex Beagley

 

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