Great World Cup result for Sports Direct

Britain's biggest sporting goods retailer said sales rose to 408m in the 13 weeks to July 25, its first quarter, up from 375m in the same period last year. Gross profit increased 17.8 per cent to 185m.

"Despite the performance of the England team during the World Cup, these results clearly show that Sports Direct had a good World Cup," said the retailer.

Sports Direct, which owns Sports World and Lillywhites stores, as well as brands including Slazenger, Lonsdale and Dunlop, said since the end of July its performance has remained strong and in line with management expectations.

The firm said it was maintaining its target of underlying earnings before interest, tax, depreciation and amortisation (EBITDA) of around 195m for the year to the end of April 2011, up from 160.4m last year.

"There has been a stronger than expected gross margin performance, in spite of there being some clearance activity on World Cup product, which is ongoing, following the early exit by England," said analyst Matthew McEachran at Singer Capital Markets.

Sports Direct fared better than most UK retailers during the recession thanks to its discount pricing and the weakness of its main rival JJB Sports, which came close to going into administration in 2009.

An industry survey showed British retail sales growth accelerated last month, helped by clothes sales.