Retailer Sports Direct boosted

Feb 12 2010 by Peter McCusker, The Journal

RETAILER Sports Direct raised its guidance on full-year profits for the second time in two months.

The upgrade, which followed a 9.4% rise in store sales for the 13 weeks to January 24, came at the same time as the Competition Commission provisionally cleared the firm’s acquisition of 31 stores from JJB Sports.

Shares jumped 7% following the trading and regulatory news.

The watchdog investigated the JJB purchases, after the Office of Fair Trading raised concerns about five areas where competition had been reduced.

The Commission said it was unlikely that there would be higher prices or a reduction in quality and choice for consumers.

In today’s update, Sports Direct, controlled by Newcastle United boss Mike Ashley, said it now expected underlying earnings for the year to April of “at least” £160m.

Chief executive Dave Forsey said the UK retail arm continued to deliver strong results. “The board is pleased with the group’s trading performance during the quarter,” he added.

The group has 371 stores in the UK and 63 overseas outlets, with more than 16,600 staff in total.