Sports Direct share price slides as half-year profits tumble

on Dec 8, 2016
Updated: Oct 21, 2019
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Shares in Sports Direct (LON:SPD) have lost more than seven percent in today’s session as the mid-cap retailer posted a hefty fall in half-year profits. The group’s chair meanwhile lashed out at critics of the company, saying that an “extreme political, union and media campaign” had damaged its reputation.

As of 12:25 GMT, Sports Direct’s share price had fallen 7.45 percent into the red to 291.44p, underperforming the FTSE 250 which has climbed into positive territory and is currently 0.33 percent better off at 17,683.30 points. The group’s shares have lost nearly a half of their value this year, as compared with about a 1.5-percent rise in the mid-cap index.
Sports Direct announced in a statement today that its underlying profit before tax had slumped 57 percent to £71.6 million in the 26 weeks to October 23, following an increase in depreciation amid a reduction in the useful life of certain assets, and strategic property investment. The group’s revenue meanwhile inched 4.2 percent higher on a currency neutral basis.

The results come after the mid-cap retailer warned on profits in September, while the group’s finance chief announced the following month that he would step down at the end of the year.
Sports Direct’s chair Keith Hellawell, who has been widely criticised by shareholders, meanwhile said in today’s statement that an “extreme political, union and media campaign waged against this company” had damaged its reputation, influenced customers and had a negative impact on the morale of the retailer’s staff.
“I begin to question whether this intense scrutiny is all ethically motivated,” he pointed out. The retailer has been under fire for the past year for the poor treatment of its warehouse staff and a lack of corporate governance.
As of 12:46 GMT, Thursday, 08 December, Sports Direct International Plc share price is 290.70p.

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