In an interim statement released prior to its annual general meeting last Wednesday, Sports Direct International said its total sales rose by 0.5 percent to £410 million (€467.7m-$656.8m) in the 13 weeks ended Sept. 6, not including the revenues from the group's new premium lifestyle division. However, gross profit decreased by 5.7 percent to £174 million (€198.5m-$278.7m).
In line with the management's expectations, retail sales grew by only 0.8 percent to £368 million (€419.8m-$589.5m), and the gross profit on the group's retail operations fell by 6.6 percent to £156 million (€177.9m-$249.9m). Last year's results were boosted by the Fifa World Cup.
Sports Direct's brands division generated a flat gross profit of £18 million (€20.5m-$28.8m) on its revenues, which declined by 2.3 percent to £42 million (€47.9m-$67.3m).
The group opened nine new core stores and closed four core stores in the U.K. It also opened three and closed four non-core stores in its domestic market. In the rest of Europe, it opened a new store in France, two in the Netherlands and one in Cyprus.
The management is still confident of reaching operating earnings before amortization of £215 million (€245.2m-$344.4m) in the current financial year before performance bonuses for the company's staff. The result should be achieved in spite of the payment of a £2 million (€2.3m-$3.2m) fee by Dunlop to Darren Clarke for his victory in July's British Open Championship.
The annual general meeting passed all the resolutions on its agenda. At a subsequent general meeting, a majority of the votes were cast in favor of a resolution for Sports Direct's acquisition of 32 freehold and leasehold properties from the company's major shareholder, Mike Ashley.
