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Sports Direct’s fashion fascias Republic and Cruise narrow losses

Sports Direct’s young fashion fascia Republic narrowed its losses from £27.7m to £8.5m for the year ended April 26 2015.

During the period it acquired 28 of USC’s 60 stores from West Coast Capital - including the assets and stock - in a pre-pack deal for £1.6m.

Turnover at Republic fell by 23.5% to £63.4m, while margin increased from 39.7% to 40.5%.

EBITDA improved from a loss of £25.1m to a loss of £7.2m due to savings made from restructuring and the closure of loss-making stores. The company had 545 employees by the year end, compared with 515 in 2014.

Fellow Sports Direct-owned fashion fascia Cruise, which has 10 stores in the UK, increased turnover by 22.5% to £26.7m for the year ended April 26 2015 due to an increase in online sales and a full year’s trading for some stores that opened during the previous year.

Gross profit margin increased from 34.6% to 36.4% thanks to joint initiatives within the group, which also includes Flannels, Republic and USC.

Cruise posted an EBITDA loss of £350,868 for the year, compared with a £1.2m loss in 2014.

It said the company’s working capital is financed by Sports Direct International, which has agreed not to withdraw finance for the foreseeable future.

Cruise employed 148 people at the year end, down from 176 in 2014. It currently has stores in Glasgow, Belfast, Edinburgh, Derby, Aberdeen, Leicester and Newcastle.

Sports Direct chief executive and Cruise director Dave Forsey said: “The directors do not intend to open any new [Cruise] stores in the coming year, instead continuing to focus on the development of the online platform.

“Gross margin improvements will continue to be driven by joint initiatives with other group companies.”

 

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