Sports World owner raises earnings target

Sports World owner Sports Direct International today raised its annual earnings forecast after enjoying a jump in sales during the summer.

The chain, which also trades as Gilesports and Field & Trek, expects to achieve underlying earnings of at least £150m (€171m), ahead of London market forecasts for a figure in the region of £147m (€167m).

Sales at the retailer, controlled by Newcastle United owner Mike Ashley, rose 10% in the 13 weeks to July 26 to £375m (€427m) while gross profit was up 5% at £157m (€179m) over the same period.

Since the end of July, Sports Direct said trading continued to be ahead of last year. The company has more than 350 stores in the UK and also owns sports brands including Karrimor, Slazenger and Dunlop.

Matthew McEachran, an analyst at Singer Capital Markets, said earnings forecasts for next year were likely to increase by 4% in the wake of today’s trading update, and as confidence and proximity to the 2010 World Cup increase.

He added: “We believe this performance has been largely driven by improvements within the UK retail division, where the back-to-basics strategy and a combination of seasonal conditions, weak competition and promotions, have contributed towards the uplifts.”

Singer also noted the business had moved a step closer to the earnings target of £165m (€188m) which would trigger a full pay-out under a new staff incentive scheme.

Sports Direct shares opened more than 3% higher at 120.3p today.

More in this Section

John Lewis and Waitrose staff latest to get coronavirus bonusJohn Lewis and Waitrose staff latest to get coronavirus bonus

Viagogo reduces workforce in Limerick due to Covid-19 spreadViagogo reduces workforce in Limerick due to Covid-19 spread

Covid-19: Ryanair to take €300m hit, but still in profitCovid-19: Ryanair to take €300m hit, but still in profit

Dire US jobs numbers drive further selloff for global markets amid Covid-19 falloutDire US jobs numbers drive further selloff for global markets amid Covid-19 fallout


Lifestyle

With documentary film ‘Fantastic Fungi’ set to take the world by storm, Joe McNamee looks at the fabulous world of mushroomsDocumentary explores the magic of mushrooms

I lead a very busy life — I’m a mature student in college — and I separated from my partner but the separation was my decision. I hate myself when it beckons as it ultimately makes me fatter, it has the reverse effectDear Louise: I had my bulimia under control. But the demon has returned

This year has been particularly difficult and stressful, and I think that’s an even more important reason to make time for your health.Derval O'Rourke: Resistance is far from futile and necessary

Best-selling author Faith Hogan is keeping the faith during the lockdown, thanks to her Moy Valley haven in Ballina, Co Mayo.Shape I'm in: Keeping the Faith during lockdown

More From The Irish Examiner