Sports Direct has become something of an unstoppable force in the UK, with majority shareholder Mike Ashley steadily building an empire on the bones of collapsed rival chains such as JJB Sports. It is hardly surprising, then, that the past year has proven to be its most successful to date – something which has certainly paid off for the chain’s staff members.
Thanks to the “record” year of sales, 2,000 of Sports Direct’s 24,000 employees will share a £126 million shares bonus as a reward for their work in the past 12 months. This equates to around 21 million shares in total.
Yet these shares could prove to be far more profitable to the employees participating in the bonus scheme in the coming months. This is because an increase of over 40 per cent per share was recorded in the last financial year, and the chain’s upward progression has showed no signs of slowing.
Chief executive of Sports Direct, Dave Forsey, praised staff for their dedication to building the brand during the past year.
He said; “I hope that all the employees who have contributed towards the group’s performance will enjoy their well-earned bonuses.
“Due to their hard work and dedication, the group continues to perform strongly.”
Sports Direct posted an increase in pre-tax profits of 40 per cent, bringing the annual total to £207.2 million. Sales also rose by 30 per cent, with a total sales figure of £2.19 billion indicating the strength of the brand.
Furthermore, it was revealed in the annual trading statement that this year has also got off to a good start with trading in the first few weeks of the 2013-2014 financial year already well ahead of official forecasts.
According to Mr Forsey, Sports Direct now plans to improve its online offering by introducing a click and collect service in the UK. This method has proven incredibly profitable for chains such as Argos and Tesco, and as a result could see the retailer post yet more impressive results in the next quarter.
However, the group has clearly been careful not to let success go to the heads of the board of directors. In the annual statement, the company cautioned that the coming year could well prove to be more challenging than the last due to the absence of the “Summer of Sport.”
It said; “Recent out-performance versus management expectations may not continue for the full year.
“Fiscal year 2014 is a non-tournament year which will make 2013 a tough comparator following the UEFA European Championships and the London Olympics.”
Yet while the group itself sees the events of the sporting world as a key aspect of its success, business unit director Ian Mitchell of Kantar Worldpanel believes its appeal lies in a different area entirely.
He says; “The real strength of Sports Direct lies in its broad appeal to consumers of all ages.
“It has grown sales from under-25 year olds by 23 per cent – an impressive performance as, in the overall market, this age group has consistently cut its clothing and footwear spend over the past few months.”
Sports Direct currently operates 396 stores in the UK.
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