Sports Direct profits expected to have halved amid annual results

Sports Direct Profits

Sports Direct is set to post dive-bombing profits amid the release of its full year results next week, according to experts’ predictions.

Analysts at Liberim have prediected that pre-tax profits more than halved compared to last year‘s £275 million figure.

The constant stream of controversy surrounding the retailer alongside its failure to hedge against the fall of the sterling after the Brexit vote is expected to hit the retailer hard.

Hints of the damage it has taken from the fall in the sterling were seen in its half year results, where profits dropped 57 per cent to £71.6 million.

Since then the retailer has warned of further damage to margins as its hedging position expired in April with nothing in place for the next financial year.

READ MORE:  Mike Ashley eyes Game with 26% stock purchase

This hasn‘t stopped the retailer in branching out, having bought a 26 per cent stake in Game earlier this week, and recently ramping up its stake in Debenhams.

It also acquired 50 US Bob‘s stores in a £100 million attempt to break the market.

The sportswear retailer, owned by controversial billionaire Mike Ashley, has been attempting to recover from the Shirebrook warehouse scandal in which the retailer was accused of running like a “Victorian” workhouse.

Efforts have largely been thwarted by repeated PR blunders from Ashley, who is currently embroiled in a £15 million court case over a drunken business meeting in a pub, in which he is alleged to have thrown up in the fireplace.

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