Sports Direct Says It Expects to Meet Full-Year Profit Target
Sports Direct International Plc (SPD), the U.K.’s biggest sporting goods retailer, said it expects to meet its 2012 target for earnings before interest, tax, depreciation and amortization of 215 million pounds ($347 million).
It set a target of 250 million pounds of ebitda for fiscal 2013, excluding the costs of an employee bonus plan and other one-time costs, the Mansfield, England-based company said today in a statement. Full-year profit fell 5.8 percent as the company reported accounting adjustments for foreign-exchange hedges.
In March 2010, Sports Direct ran its first television commercials which helped U.K. retail sales gain 11 percent to 1.25 billion pounds. The company aims to have a presence in 17 European Union countries in five years, Chief Executive Officer Dave Forsey told reporters. It is currently in eight EU nations.
“We’re trading well in a difficult market,” said Forsey on a conference call.
Sports Direct fell 7.9 pence, or 3.1 percent, to 250.1 pence at 8:44 a.m. in London. The shares have risen 56 percent so far this year, giving the company a market value of 1.4 billion pounds.
Net income was 84.2 million pounds, or 13.93 pence per share in the year ended April 24, down from 89.4 million pounds, or 14.76 pence per share, in the same period a year earlier, Sales gained 10.2 percent to 1.6 billion pounds.
Sports Direct cut net debt by 52 percent, to 148.9 million pounds. The company chose not to pay a dividend.
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