Sports Direct inches closer to profit target that could see some staff get £18,000 each in bonuses

http://www.independent.co.uk/news/business/news/sports-direct-staff-could-get-a-multimillion-bonus-payout-after-the-retailed-slashed-its-profit-forecast-10392953.html

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Some 2000 permanent staff at Sports Direct could be about to get a slice of £150 million bonus scheme after the chain cuts its profit target for the year by £60 million, bringing staff closer to the total needed for the payout.

Sports Direct admitted the profit forecast was slashed because of its failed takeover of House of Fraser.

But bumper profits mean Sports Direct is closer to meeting the terms of a 2011 bonus agreement that would see 2000 of its 27,000 staff receive up to £18,000 each from a £150 million bonus pot.

The retailer posted pre-tax profits up 30.9 per cent to £313.4 million, taking it closer to a new lower target of £420 million needed for the payout.

Sports Direct also hit out at what it called "unfounded and inaccurate" reporting of its use of zero hour contracts. Some 75% of staff were reported to be on the controversial contracts, which do not guarantee employees a set number of hours.

Sports Direct has faced years of criticism and attacks, particularly by Labour during the last election, of its high use of the contracts.

On the rise in the minimum wage to £9 a hour from 2020, Forsey added he was not concerned and said he expected the extra expense to increase the current wage bill of £300 million by between 1% and 2%.

Forsey said: "We originally thought we would hit the target, but that was before the takeover didn’t happen. There would be other UK acquisitions we would look at.

"We’re still in many discussions with prospective partners… We just haven’t managed to get a few over the line."

The plans come as the UK’s biggest sports retailer revealed sales jumped 4.7% to £2.83 billion with pretax profits rising 30.1% to £313 million in the year to April 26.

Forsey revealed that sales of running and fitness have helped boost sales, although there has been a fall in golf. A new Under Armour store has also performed well, and the first full year of trading from its new Oxford Street store has also impressed.

Sports Direct was one of the first to charge for click and collect – with John Lewis shortly following suit – and Forsey revealed 20% of online sales are now collected in store.