Sports Direct to Achieve Profit Target without Need for Increased Marketing Spend
Largely thanks to its online channel, Sports Direct has announced it is on track to reach its full-year profit target of £310m.
In addition, the company credits its affordable product offering plus the acquisitions of brands Lillywhites, Donnay and Dunlop for its gross profit for the 13 weeks to 26 January rise by 14.6% to £280.7m.
Chief Executive at Sports Direct, Dave Forsey, commented: "Despite tougher comparisons during the period, Sports Direct Retail continues to perform well driven by our on-going focus on exceptional quality, unbeatable value and availability.
While we retain the ability to invest in margin, inventory and group marketing to deliver long-term sustainable growth, the board is very confident of achieving at least our full year internal EBITDA target of £310m."
Although the brand invests in price, it spends relatively small amounts on advertising. Sports Direct says that although it could increase its marketing investment to boost growth, it will reach its full-year profit target of £310m without the need to do so.