Sports Direct reiterates earnings guidance, confirms Flannels deal

Sports Direct reiterated its full-year guidance on Wednesday as it expressed optimism over its outlook and confirmed that it now owns 100% of Manchester-based luxury and designer fashion chain Flannels.

In a trading update ahead of its annual general meeting later in the day, the company said its outlook remains in line with the statement from 20 July, in which it stated that it aims achieve growth in underlying earnings before interest, tax, depreciation and amortisation of between 5% and 15% during FY18.

The company said trading in its new generation flagship stores continues to exceed its expectations and it is continuing to relocate smaller format stores to new generation store to "elevate" its retail space and improve the customer experience.

Founder and chief executive Mike Ashley said: "We remain fully focussed on our strategic goal of moving our core business towards the 'Selfridges' of sport in order to further strengthen our proposition and drive long-term profitability. We will continue to build on the positive progress that we have made over the last 12 months, which we outlined during a very constructive meeting with stakeholders in July."

The group also responded to recent media speculation by confirming that it now owns 100% of Flannels.

"The board anticipates this acquisition will significantly enhance earnings in our Premium Lifestyle division in the medium to long-term. We are pleased to confirm that Flannels founder Neil Prosser will remain an integral part of our Premium Lifestyle division."

Also on Wednesday, the retailer's chairman, Keith Hellawell, narrowly survived a shareholder revolt as just over 53% of independent investors voted for his re-election following speculation that he would be ousted.