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Sports Direct confirms record bonus as profits soar


Sporting goods and fashion retailer Sports Direct has posted an impressive 32.7 per cent increase in underlying profit before tax in full-year results released today.

With targets for its Employee Bonus Share Scheme met, its employees will now receive a bonus of 75 per cent of base pay in shares of £1.25 per share to add to the similar incentive payments achieved last year.

The payments, which will be paid in shares over a two year period, were conditional on EBITDA surpassing £195 million for the 52 weeks to April 24th 2011, which was realised with a final total of £200.4 million representing a 24.9 per cent rise year-on-year.

UK retail sales performed particularly well during the year, up 11.3 per cent compared to 2010, and the like-for-like gross contribution of this segment grew by 6.6 per cent over the period.

Dave Forsey, CEO of Sports Direct, said: “This has been an excellent year of growth for the group in what has been a challenging retail environment.

“Key to this growth has been the success of our employee bonus share scheme, which we introduced to focus the whole group on our ambitious growth targets.”

Core UK stores numbers grew by six over the 12 months to now total 306 worldwide, whilst non-core store numbers remained unchanged and its overall selling area grew fractionally to 3.8 million sq ft.

Online revenues in the UK jumped 97 per cent to £95.7 million but the retailer is still focused on increasing its bricks and mortar presence by adding 15 to 20 outlets in this financial year – with seven having already opened in Q1.

Sports Direct’s international stores increased from 65 to 79 in the year, including its first ten in Portugal, and another nine are expected in 2011 although it has no plans to expand outside of Europe at present.

Forsey added: “The strength of our business model means that we are very well positioned for the challenges and targets for the future.

“Our progress since the year end is in line with management expectations and we are confident of reaching our current year target of underlying EBITDA.”

In the first nine weeks of the year the retailer posted a 10.3 per cent jump in total group sales and earlier this month it bought the USC and Cruise brands.

Published on Thursday 14 July by Editorial Assistant

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