Pre-close Trading Update

RNS Number : 0525D

Sports Direct International Plc

24 April 2013

 



24 April 2013

Sports Direct International plc

Pre-close Trading Update

Resilient Business Model Drives Strong Performance

Sports Direct International plc ("the Group" or "the Company"), the UK's leading sports retailer, today provides an update on current trading in advance of its year end on 28 April 2013.

Group total sales for the nine weeks ending 31 March 2013 were up 14.3% to £317.4m (2012: £277.8m) and gross profit was up 22.7% to £128.6m (2012: £104.8m)^{(1) (2)}.

Sports Retail sales in the nine week period increased 13.6% to £264.3m (2012: £232.6m) and Sports Retail gross profit increased 22.7% to £104.8m (2012: £85.4m)⁽¹⁾.

As previously guided, UK Sports Retail square footage has remained at circa 4m sq. ft. (2012: circa 4m sq. ft.).

Premium Lifestyle sales in the period were up 76.5% to £18.0m (2012: £10.2m) with gross profit increasing 42.0% to £7.1m (2012: £5.0m)⁽²⁾.

The Brands division revenue increased 0.3% to £35.1m (2012: £35.0m) while gross margin increased 16.0% to £16.7m (2012: £14.4m).

As previously announced, all targets under the 2009 Employee Bonus Share Scheme have been met.  Accordingly, circa 2,000 eligible employees received 25% of their base salary in shares in August 2012 and will receive a further 75% of their base salary in shares in August 2013⁽³⁾.

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

"The strength of this performance during the nine week period continues to demonstrate the resilience of our business model, especially in the UK.  Within our Sports division online sales now represent circa 15% of total Sports Retail sales.

"As we announced in the Interim Management Statement in February 2013, we are certain of reaching our 2013 full year targeted underlying EBITDA of £270m (before the charge for the bonus share schemes)."

The Company will announce its Preliminary Results for the year ending 28 April 2013 on Thursday 18 July 2013.

(1)	Sales and gross profit from the former JJB stores are excluded;
(2)	Results from the recently acquired Republic business are excluded; and
(3)	To the extent that a significant number of eligible employees elect to sell some or all of their shares, the Board will consider a number of options open to it, including whether to: (i) implement an on market buy back of shares pursuant to the authority given by shareholders at the Company's AGM in 2012; or (ii) fund the Company's Employee Benefit Trust so as to allow it to acquire shares in the market to replace those shares transferred to eligible employees pursuant to the vesting.

For further information, please contact:

Sports Direct International plc Dave Forsey, Chief Executive Bob Mellors, Group Finance Director	0845 129 9229
FTI Consulting Jonathon Brill Alex Beagley	0207 831 3113

Georgia Mann

 

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