Sports Direct share price rises as group hints at better-than-expected annual performance

Shares in Sports Direct International (LON:SPD) opened more than three percent higher this morning, after the FTSE 100-listed retailer lifted its profit outlook for the year ended April 26.

The sporting goods retailer, founded and majority controlled by Newcastle United owner Mike Ashley, said in a statement today that underlying earnings before interest, taxation, depreciation and amortisation (EBITDA) would be in line with market expectations at £380 million. But profit before tax and earnings per share are both expected to come in above forecasts of roughly £290 million and 36.7p per share. “This is primarily as a result of our continued and prudent depreciation policy and lower interest charges,” Sport Direct noted.
Specific figures are to be provided at the group’s annual conference later today. Sports Direct will also provide an update on its investment in large-format city centre stores in the UK and on its plans for combined gym and sports retail concept stores.
In its filing today, Sports Direct further revealed that net debt was around £60 million as of April 26, compared to £212 million a year ago. The company plans to announce its full-year results on July 16.
The company saw its share rising over three percent at the opening bell this morning. As of 08:06 BST, the stock was trading 3.19 percent higher at 679.50p. Shares in the group have fallen around four percent in the year to date having been negatively affected by claims of corporate governance issues as well as allegations of dubious business practices.
As of 08:48 BST, Thursday, 28 May, Sports Direct International Plc share price is 680.00p.