Sports Direct International (SDI) is about to open its first Spanish store in Zaragoza during the month of April, according to a report that could not be confirmed by the time of going to press. The company's move into the Spanish market can be seen as a logical step after the company's recent acquisition of Megasport in Portugal. A few weeks ago, the group confirmed its intent to expand its retail operations in all the countries that have adopted the euro. It is already active in Ireland, Belgium, France, Hungary, the Czech Republic and Slovenia.
In an interim statement a few days ago, Sports Direct said that its total sales went up by 21.1 percent to £589.5 million (€683.0m-$895.1m) for the 13 weeks ended Jan. 27, a sharp increase over the 10 percent growth forecast by the analysts of Bank of America Merrill Lynch. This sales figure does not include the sales of the 20 stores acquired from the administrators of JJB Sports on Oct. 1, which will be included in the group's preliminary results after completion of the transaction. The gross profit increased by 22.7 percent to £244.8 million (€283.6m-$371.7m), against a 15 percent estimate.
The group's strong performance during the third quarter was primarily driven by its Sports Retail division, including online operations, following the successful integration of its new operating platform. Sports Retail sales in the 13-week period rose by 21.2 percent to £495.8 million (€574.4m-$753.0m).
Premium Lifestyle sales went up by 42.4 percent to £46.7 million (€54.1m-$70.9m). The revenues for the Brands division rose by 4.4 percent to £47.0 million (€54.5m-$71.4m). The group has an extensive portfolio of sport, fashion and lifestyle brands including Dunlop, Slazenger, Everlast, Lonsdale and Karrimor.
After posting better-than-expected sales figures in the third quarter, the company is confident that it will reach its targeted underlying Ebitda of £270 million (€312.9m-$410.1m) for the full financial year, before charges related to the company's bonus sharing schemes. The group's preliminary results are scheduled to be announced on July 18.
