Sports Direct see sales rise

Sports Direct, Britain's biggest sporting goods retailer, saw sales and profits soar in the last quarter, in contrast to troubled rival JJB.

The sportswear chain, controlled by Newcastle United owner Mike Ashley, said yesterday that it expects to reach its underlying profits goal of 205 million in the year to April, after sales jumped 12 per cent to 416m in the 13 weeks to 23 January.

Gross profit increased 8.4 per cent to 167m and the company said the strong performance continued into February. Hitting the profits target would trigger an estimated 10.8m pay-out between about 2,000 staff through the company's bonus scheme.

Matthew McEachran, an analyst at Singer Capital Markets said: "The, third-quarter statement has come in well ahead of forecast, driven mainly by UK retail sales growth.

"This is despite the very tough prevailing conditions and is likely to make Sports Direct a stand-out performer over this period."

Rival JJB Sports has issued a string of profit warnings and last week said it planned to close at least a further 45 stores as it proposed a second company voluntary arrangement (CVA) to creditors in as many years. Sports Direct indicated it would show JJB no mercy.

Chief executive Dave Forsey said: "During the remaining quarter and, dependent on trading, we will continually review further opportunities to invest in margin and, or, extra group marketing."

The company owns more than 350 stores in the UK, mostly trading under its Sports Direct name but also as Sports World, Lillywhites, Exsports, Gilesports & Hargreaves and Field & Trek. Brand names in its portfolio include Carlton, Slazenger and Donnay.