Mike Ashley has insisted that Sports Direct is on track to hit full-year profit forecasts despite seeing a fall in gross profits.
The sportswear retailer said that its shop estate generated higher sales than during last year’s World Cup summer after a series of store openings.
The company posted sales of £368m in its retail division in the 13 weeks to July 25, up 0.8%, although last year’s boost from World Cup replica shirts and other products meant UK retail sales fell by as much as 40% during one week this year. Gross profit fell by 5.7% to £174m in the period.
However, Sports Direct opened nine stores in the period, offset by two closures and two shop relocations. Its retail profits dipped 6.6% to £156m in the 13-week period.
Across the group, which has 350 UK stores and owns sporting brands including Dunlop, Karrimor and Slazenger, sales were 0.5% higher at £410m. Profits fell 5.7% to £174m.