Sports Direct’s gross profit has continued to rise, giving management confidence that it will reach its stretched full year target.
In the nine weeks to September 29 gross profit increased 19.4% to £199.8m as group sales rose 15.1% to £463.7m.
During the period sports retail sales grew 14.8% to £395.7m and gross profit across this arm increased 19.7% to £170.9m.
Sales at Sports Direct’s premium lifestyle division rose 74.9% to £32m, as it was the first year to include revenues from young fashion chain Republic, which the business acquired in February. Gross profit soared 82.9% to £13.9m.
The branded division posted a sales increased of 12.9% to £36m with gross profit increasing 9.5% to £15m.
Chief executive Dave Forsey said: “As we highlighted this time last year, the London Olympics was followed by an excellent back to school period. Therefore to continue to produce these numbers, especially within sports retail, clearly demonstrates the strength of our business model.”
Since the end of September, Sports Direct’s trading has remained strong and Forsey said the board was confident of reaching the stretched full year EBITDA target of £310m.