Record results for Sports Direct

Record results for Sports Direct

British sports chain Sports Direct has managed to grow its turnover 23.8 % in the past fiscal year, reaching 2.706 billion pounds (3.4 billion euro). Gross profit grew 15.6 % to 239.5 million pounds (or 303 million euro).

Increased importance for online sales

Its record-setting results were mainly because of its British stores, the Austrian purchases (EAG), the Baltic region (SIG) and its excellent online sales (which grew 26.8 %). Web sales have now taken up 17.1 % of the company's full sales.

 

A conflict with one of its main suppliers, Adidas, has put Sports Direct in the spotlights over these past few weeks, as Adidas refused to supply shirts for its team at the World Championship Football (like Germany, Spain, Argentina and Colombia) "as [Sports Direct] did not present the products decently". The conflict has been resolved by now and a solution has been reached.

 

Profits go to purchases and personnel

Another difficult issue this past year was the approval of a personnel bonus package as Sports Direct wants to let management in on the profits if certain targets have been reached. Its new plan goes until 2019 and is worth 200 million pounds (or 253 million euro). Chairman Mike Ashley, who owns some 60 % of the chain, has already waived his own part in the bonus package.

 

Shareholders will not be getting a dividend as the chain wants to use the profit for possible purchases. The chain is already active in 191 countries (among them Belgium and France), but it still relies heavily on the United Kingdom, with more than 400 of its 600 stores located there.

 

 

Questions or comments? Please feel free to contact the editors


Beate Uhse files for insolvency

15/12/2017

German erotic company Beate Uhse filed for insolvency. It struggled to keep its turnover under control in a digital world. Its stores will remain open for the time being. 

Colruyt Group: turnover grows, profit drops

12/12/2017

Colruyt Group’s six-month results clearly show that the increased competition in the Belgian food retail industry is weighing the company down. It is still highly competitive, but its margins are dwindling.

EU needs to lead in fight against protectionism

08/12/2017

(Content provided by EuroCommerce) On the occasion of the European Trade Policy Day today, EuroCommerce urges the European Union to fight against the growing protectionist tendencies everywhere.

Hema returns to profitability

07/12/2017

Hema has become profitable again: after improved net losses in the past quarters, the Dutch chain has managed to become profitable again in the third quarter.

Huge third quarter loss for Hudson’s Bay

07/12/2017

Canadian Hudson’s Bay suffered a huge loss in its third quarter of 2017. Its turnover also slumped compared to the year before.

Hema opens first Belgian flagship stores based on international formula

06/12/2017

Dutch Hema has opened its first Belgian flagship store in Brussels, based on its international store formula. It will open a similar store in Antwerp by the end of the week.

Back to top