Sports Direct, the sportswear retailer owned by billionaire Mike Ashley, has reported a "rise in half-year profits despite a warm autumn that has hit a string of clothing retailers," according to Kadhim Shubber of the FINANCIAL TIMES. The company also "shrugged off the effect of England's poor performance at the World Cup in Brazil, which weakened sales of the team's football shirts," as pre-tax profits rose 9.8% to £160.6M ($252.2M) for the six months to Oct. 26. Sports Direct CEO Dave Forsey said, "The results for the six months were solid considering the adverse impact on performance during the period of England’s early departure from the FIFA World Cup in Brazil and the unseasonably mild weather during autumn reducing footfall." Clothing sales this autumn have "taken a hit as the warm weather caused customers to delay buying hats, scarfs and other winter clothing." But with gross margins improving 130 basis points to 44.5%, analysts said that Sports Direct had "offset slowing sales by selling more of their higher-priced products." Earnings before interest, tax, depreciation and amortization rose 10.8% to £203.1M ($319M) during the period, "as the company bought interests in retailers Tesco and Debenhams." Forsey said that Sports Direct would continue to "explore opportunities" for strategic investments in other companies (FT, 12/11).
