Sports Direct enters FTSE 100 and crowns a strong Q2

The largest athletic apparel group in the UK, Sports Direct, will be soon trading as part of the London-based main benchmark index. The retailer will join the FTSE 100 after floating in 2007 at 300 pence a share. Entering the FTSE 100 comes as a gold

brooch for a strong second quarter at the retailer, as Sports Direct has seen sales rose 18.2 percent to 613 million pounds in the 13 weeks to July 28. Gross profits were up by 23 percent to 260 million pounds.

Dave Forsey, chief executive at Sports Direct, said: "As we highlighted at our preliminary results in July, the group has experienced a strong start to the year with trading ahead of management's expectations,” reported ‘The Guardian’.

Sports Direct to enter the FTSE 100 in late September

The apparel group, owned and controlled by Newcastle United owner Mike Ashley, explained in a note that the sales growth was driven by a 14.5 percent jump in sportswear sales to 505 million pounds. However, the big motor of the quarter were sales at the premium lifestyle division, which includes fashion chain Republic, and that almost doubled to 57.1 million pounds.

"This performance is in part attributable to the historic investment in gross margin; the on-going investment in product range and availability; and continued optimisation of our online and in-store product offer," added Forsey.

Shares at the company founded by Mike Ashley have risen by 86 percent since the beginning of the year. The stock has risen from its initial price of 300 pence in 2007, to over 700 pence and valuing the business in more than 4 billion pounds.

The FTSE 100 is updated every three months, reflecting changes in the market value of companies. The changes will take effect from 23 September.

Sports Direct said Wednesday in a trading update that sales had risen by 18.2 percent during the last quarter on an annual basis.