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LONDON, Dec 16 (Reuters) - Sports Direct, the
British sportswear retailer controlled by founder Mike Ashley,
reported a 22% rise in first-half core earnings, as it stemmed
losses in its premium unit which includes fashion store Flannels
and House of Fraser.
The group also repeated its belief that it would not be on
the hook for any "material liabilities" from a 674 million euro
bill it received from Belgium's tax authority in July.
Looking ahead, Sports Direct said Britain's recent election
result would mean less market unpredictability and that
efficiency measures it was taking meant it was well-placed for
sustainable growth.
Underlying earnings (EBITDA) including acquisitions for the
six months to Oct. 27 came in at 181.2 million pounds ($232.48
million) compared to the 148.8 million pounds it made in the
same period last year.
Sports Direct has grown by acquisition in recent years, most
notably buying the troubled House of Fraser department store
business in 2018. It said the premium unit, which also includes
upmarket fashion store Flannels, improved in the half year from
a 29 million pound loss to a 5.6 million pound loss.
A 71% rise in earnings in its European retail business also
helped boost the half-year outcome, the company said.
"This is showing the improved product mix we are getting
access to driving higher margins with less units, together with
improved processes and procedures driving efficiencies, is
showing tangible results," the company said in a statement.
($1 = 0.7794 pounds)
(Reporting by Sarah Young; editing by Kate Holton)
