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Sports Direct profits fall 20%

Sports Direct saw pre-tax profit fall 20.2% to £68.2 million for the year ended April 26.

Group revenue was up 8.6% to £1.36 billion over the year and retail like-for-like finished 2.5% ahead. This is the first time the sportswear multiple has given the market like-for-like sales data.

Group gross margin decreased by 280 basis points to 40.8%. Within that, UK retail gross margin fell to 42.5% against 45.7% last year.

Sports Direct’s wholesale division saw sales rise 18.7% to £203.6m. Licensing revenue was up 27.5% to £26.9m. Total revenue for the company’s brands division, which includes its wholesale operation, rose 19.7% to £230.5m, or 4.7% on a currency neutral basis.

Sports Direct chief executive Dave Forsey said: “The second half of the year remained challenging, but we are pleased with these solid full year results that reflect the resilience and relevance of our flexible business model, focused on the core principles of retailing.” 

“We strengthened our position in our core UK market during the year; grew revenues across both Retail and Brands divisions and delivered underlying EBITDA in line with our expectations. Our strategy remains the right one for the business and against the tough market conditions.” 

“The Board is confident that our initiatives and hard work across all areas of the Group leave us well positioned for the next phase of growth. Accordingly, at current exchange rates, we are expecting underlying EBITDA to be at least £140m this financial year.”

 

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