Upward sale trend has been maintained

The chain of INTERSPORT specialist sport stores in the third quarter of 2010 gained increase of the revenue on sales of goods and services of 4.3% and the improvement of margin on sales by 1.8% as compared to the analogous period in 2009.

In the third quarter of 2010 INTERSPORT Polska S.A. Company gained revenue on sales of goods and services of PLN 45,682,000.00, a 4.3% increase as compared to the analogous period in 2009 (PLN 43,816,000,00 ).
Increasingly, in the period from January to September 2010, INTERSPORT chain’s profit on operational activities equaled to PLN 2,040,000, an over 38% increase as compared to the analogous period in 2009 (PLN 1,477,000).
In the third quarter of 2010, due to a specific for the Company seasonability of sales, the Company suffered loss of PLN 968,000.00. This is a phenomenon typical for the sports branch which results from lower unit prices of summer assortment goods.
A positive aspect of the past period is the fact of achieving, by INTERSPORT Polska S.A., progression of financial results as compared to the previous year. In the reporting period, the Company:
- Improved margin on sales. INTERSPORT chain in the third quarter of 2010 increased margins by 1.8 p.p. as compared to the analogous period of the last year;
- Significantly reduced stocks. Efficient operation of the modern warehouse has significantly improved coordination of activities in the goods management system in all INTERSPORT stores. In effect, as of 30.09.2010 stocks were reduced by PLN 8,063,000.00 to the level of PLN 48,981,000.00, a 14% decrease as compared to 30.09.2009.
- Decreased long-term liabilities. As of 30.09.2010 the level of liabilities decreased by 50% as compared to 30.09.2009, i.e. by PLN 15,107,000.00 due to timely repayment of long-term loans and the obtained third tranche of the EU subsidy.

The Management Board of INTERSPORT Polska S.A. is of the standpoint that current sale results are comparable to last year’s ones. The most important month for the forecast sales results is December when considerable revenue is gained. Therefore no sooner than in mid-December 2010 it will be possible to analyze the degree of accomplishment of the forecast results. Should any significant deviations occur, the Company will immediately announce a forecast correction in a current report.