Revenues rising for Lifestyle Sports, projected to reach profitability by 2025
Lifestyle Sports Reports Significant Financial Improvement
Irish sports retailer, Lifestyle Sports, has announced impressive financial results for the quarter ended December 31, 2024. The company has reported a 23% increase in Earnings Before Interest Tax Depreciation and Amortisation (EBITDA), a promising sign of cash profitability.
The growth in EBITDA was primarily driven by a combination of continuing cost savings, a return to top-line revenue growth, and an improvement in gross margin percentage. The quarter included key trading periods such as Black Friday and Christmas, likely boosting sales and profitability.
Lifestyle Sports operates through 38 physical stores and an online platform. The company experienced 'like for like' revenue growth of 4.5% in the same quarter, with growth being broad-based across both performance and sports-inspired fashion segments, and across all product categories and channels. This growth was achieved in a challenging and competitive market.
Despite a slight dip in revenues over the 12 months to September 28, 2024, the company experienced revenue growth after that period leading into the quarter ended December 31, 2024. Revenues for the year slightly dipped from €104.99m to €104.18m in the same period.
The increased cash profitability contributed to a €1.53m reduction in operating losses, resulting in a pre-tax loss of €1.23m. This loss takes account of non-cash depreciation costs of €7.41m and exceptional costs of €624,372 relating to store closure costs and restructuring costs.
The company's numbers employed reduced from 408 to 383, with staff costs declining from €13.5m to €13.45m. Shareholder funds at Lifestyle Sports (Ireland) at the end of last September totalled €40.87m, with cash funds declining from €11.2m to €8m.
In a post-balance sheet event, Lifestyle Sports participated in the successful re-financing of the Stafford Group with Bank of Ireland. The Stafford Group, Lifestyle Sports' parent company, refinanced its total banking facilities of €22.7m through a combination of term loans amounting to €19.2m and overdraft facilities amounting to €3.5m. This extension of the multi-generational relationship with Bank of Ireland ensures that the group and the company are appropriately capitalised to secure their long-term strategic objectives.
These positive results indicate that Lifestyle Sports is expected to return to profit in the current year. The company continues to focus on delivering a high-quality shopping experience for its customers, both in-store and online, while managing costs effectively.
