Though many British retailers are struggling through the economic downturn (see previous issue), Sports Direct International is thriving. For the 13 weeks that ended Jan. 25, sales grew by 12.0 percent to £355 million (€398.3m-$509.1m) and the gross profit inched up by 0.7 percent to £143 million (€160.5m-$205.1m). The gross margin was affected by the weakness of the pound, but the same factor helped figures from outside the U.K.
Some attributed the success in tough times to the low-budget format of Sports Direct stores, which appeals to customers who are cutting back their spending.
Just in the 13 weeks, the company opened 11 retail stores in the U.K. and one abroad, while closing 17 and one, respectively.
Sports Direct reiterated its previous guidance of an operating profit before depreciation and amortization (Ebitda) of £135 million for 2009.
