Sports and leisure fashion chain Sports Direct, which is owned by Newcastle owner Mike Ashley, has reported a strong set of financials for the year just ended.
Mike Ashley – Sports Direct owner – huge increase in profits
The reported profit before tax has risen by more than 1000% – not too bad at all – and that’s a 10 times rise in profits.
The company’s re-branded their shop fronts to Sportsdirect.com, which is said to have driven huge web traffic business.
Revenues were up by around 11% after the company provided depth and breadth in their product line, at low and very competitive prices.
The company is 71% owned by Newcastle United FC owner Mike Ashley, and is Britain’s biggest sports goods retailer.
Pretax profit was £102.1M in the financial year to April 25th, and met analysts’ forecasts.
Sports Direct said revenue increased by 6.2% to £1.45B, while gross margin fell 20 basis points to 40.6% – well that’s what you get when you offer the lowest prices.
The key in this business strategy is moving a lot of product – and that seems to have been what Sports Direct were able to do over the last year.
Wonder if Mike has a few million available for new Newcastle players?
Written from London, England.