Sports Direct's H1 profits rise, bullish on recovery at House of Fraser

Group revenue for the first half year at Sports Direct International was up 14 percent to 2,043.5 million pounds (2,740 million dollars), which the company said was largely due to acquisitions contributing 222.5 million pounds, growth in premium lifestyle, growth in wholesale and licensing and the full period of revenue from House of Fraser. Excluding acquisitions, and on a currency neutral basis, the company added, group revenue was down 6.4 percent. Gross margin increased 230 basis points to 43.8 percent and underlying EBITDA improved 21.8 percent to 181.2 million pounds (242.6 million dollars) driven by the growth and improved profitability in the premium lifestyle and European retail divisions. Excluding acquisitions and on a currency neutral basis underlying EBITDA was up 15.1 percent.