UK: Sports Direct's profit falls 91% in challenging year
Sporting goods retailer Sports Direct has posted a 91% slump in full-year pre-tax profit after being hit by the weak pound and investment write-offs.
Profit tumbled to GBP10.7m (US$17.6m) despite revenues rising 8.6% to GBP1.37bn.
The company said non-cash adjustments included impairment of freehold property and intangible assets of GBP30.5m and of strategic investments held by Kaupthing Singer and Friedlander of GBP53.1m.
Group gross margin decreased by 280 basis points to 40.8%, almost entirely due to the drop in the value of the pound.
Group underlying EBITDA fell 8.9% to GBP136.8m and underlying profit before tax fell 20.2% to GBP68.2m - in both cases due to the fall in margin.
During the year the company rolled out branded areas in 121 stores in China within a four month period from start to finish.
No dividend was paid for the year, as Sports Direct said reducing debt should be a priority.
At current exchange rates the company is expecting underlying EBITDA to be at least GBP140m for fiscal 2010.
Dave Forsey, chief executive of Sports Direct, said: "The second half of the year remained challenging, but we are pleased with these solid full year results that reflect the resilience and relevance of our flexible business model, focused on the core principles of retailing."
Help test our new apparel sourcing tool.
The ways in which the current recession will impact consumers’ interest in playing sports, working out or getting regular exercise – and of course buying the kit to take part – forms the cornerstone o...
Pinning your hopes on the success of the England football team can be a soul-destroying business, as any long-suffering fan will tell you. So it's as well that the success of retailer Sports Direct In...
Outdoor wear retailer Blacks Leisure Group has announced that the statutory challenge period for its company voluntary arrangements (CVAs) has now expired and they have become effective....
Retail group Sports Direct International raised its full-year earnings guidance after posting a 39% hike in underlying first half pre-tax profit to GBP71.9m (US$117.1m)....
- Unlocks for the future fashion sourcing landscape
- EU eyes mandatory due diligence for apparel supply
- What TTIP might mean for US, EU textiles & apparel
- Geo-political uncertainty and how to survive it
- Where next for Corporate Human Rights Benchmark?
- Li & Fung forms supply chain partnership with PVH
- US Q4 in brief – Finish Line, Oxford Industries
- Sears has "substantial doubt" of future
- Adidas mulls roll-out of in-store customisation
- Brands urged to empower women in sub-Sahara Africa
- Central and East Europe Report Package
- Central America strategic sourcing review - a focus on Guatemala, El Salvador and Honduras
- Southeast Asia strategic sourcing review – a focus on Cambodia, Vietnam and Myanmar
- When Things Go Wrong - A Practical Guide to Managing Common Problems in Apparel Sourcing
- Outdoor performance apparel 2016: A broader perspective