Sports Direct is carrying out a strategic review of its new acquisitions, USC and Cruise, and will unveil its plans for its newly established premium lifestyle division in December.
The sports retailer said it was too early to reveal detailed plans for the division – which it set up when it bought 80% of USC and Cruise in July – but was exploring options.
Sports Direct chief executive Dave Forsey said: “It’s all part of the strategic review. We’re looking at all parts of the business and deciding what comes next.
“We’ve got the cash flow to allow the [USC and Cruise management] team in Scotland to do what they weren’t able to before.”
Forsey did not rule out acquisitions to add to the new division but declined to be drawn on targets.
The sportswear giant’s profits suffered a dip after sales remained flat in the 13 weeks to July 25, although the retailer was up against tough comparatives, as last year the World Cup took place over the same period. Retail sales we up 0.8% to £368m over the quarter, while retail gross profit dipped 6.6% to £156m.
Forsey said the World Cup period was always going to be tough to compare against and highlighted its UK like-for-likes were down 40.2% in the week which waspitted against the peak of England’s involvement in the tournament.
Sports Direct is investing in margin but has been hit by Far East production cost rises according to Forsey, who stressed the importance of keeping prices sharp.
He said: “Consumers are in the mindset where value resonates.”
Total group sales at Sports Direct also remained flat, up 0.5% to £410m, and gross profits dipped 5.7% to £174m over the period.
The sportswear retailer pushed ahead with its international expansion in the period, opening new stores in France, the Netherlands and Cyprus.