Retailer Sports Direct today reported a 12% increase in full-year core earnings, helped by its strategy to smarten up its stores and sell more premium products.
The sportswear chain, founded and run by billionaire Mike Ashley, made underlying earnings before interest, tax, depreciation and amortisation (EBITDA) of £306.1m in the year to April 29.
That compares to analysts' average forecast of £296.8m, according to Reuters' data, and £272.7m made in 2016-17.
But the company's reported pretax profit slumped 72.5% to £77.5m, partly reflecting an £85.4m charge from its equity investment in department store Debenhams.
Sports Direct, which has been heavily criticised for its past treatment of workers, its financial disclosure and poor corporate governance, in December forecast full-year core earnings growth of 5-15%.
Ashley, who owns 61% of Sports Direct's equity and is chief executive, is trying to revive sales and profit growth with smarter stores that sell more premium products from the likes of Nike and Adidas.
The retailer calls this its "high street elevation strategy".
"The elevation strategy continues to exceed expectations," said Michael Murray, head of elevation.
"As the property pipeline and brand relationships accelerate, we are confident in achieving between a 5 percent and 15 percent improvement in underlying EBITDA for the coming financial (2018-19) period," he said.
Shares in the retailer have increased 45% over the last year having slumped in 2016.
