Britain’s biggest sporting goods retailer Sports Direct posted a 20 per cent rise in full-year profit and said it had made up with key supplier Adidas AG after a recent row with the German sportswear firm.

Sports Direct had criticised Adidas for its decision not to supply the firm with replica shirts for the teams it sponsored at the World Cup, due to it being unhappy with the presentation of the retailer’s stores.

Sports Direct had said it felt the problem was more to do with its discount approach but chief executive Dave Forsey told reporters yesterday recent talks had been productive.

“The recent dialogue with Adidas has been encouraging,” Forsey said. “They are beginning to understand at the top level within their business the efforts we’re making in terms of the stores.”

The group, which has over 600 sports stores in Europe, including 400 in the UK, said underlying pre-tax profit for the year to April 27 jumped to £249.3 million, slightly below analysts’ average forecast of £255 million.

Its shares rose 1 per cent to 721 pence in early trading.

Group revenue rose 23.8 per cent to £2.7 billion, led by strong underlying trade at its UK sports retail stores, the contribution of businesses bought in Austria and the Baltic region in May 2013, and a 26.8 per cent rise in online sales.

Sales in fashion and brands were also up, while group gross margin increased 180 basis points to 42.7 per cent.