Sports Direct International’s (LON:SPD) share price has taken a heavy hit this Monday as the London-listed company said that it was delaying the publication of its preliminary results. The sports goods retailer cited the integration of the House of Fraser business along with increased regulatory scrutiny.
As of 10:01 BST, Sports Direct’s share price had given up 10.89 percent to 234.71p, underperforming the FTSE 250 which has climbed marginally higher and is currently 0.05 percent better off at 19,561.53 points. The sports goods retailer’s shares have given up more than 42 percent of their value over the past year, as compared with a near six-percent fall in the mid-cap index.
Sports Direct to delay FY results
Sports Direct announced in a statement this morning that the publication of its preliminary results for the period ended April 28 will be delayed beyond July 18, and the results are now expected to be out between July 26 and August 23. The mid-cap company cited “the complexities of the integration into the Company of the House of Fraser business, and the current uncertainty as to the future trading performance of this business, together with the increased regulatory scrutiny of auditors and audits”.
“Sports Direct believes its accounts and their audit to be at an advanced stage. However, there are a number of key areas to conclude on which could materially affect the guidance given in Sports Direct’s announcement of 13 December 2018,” the retailer cautioned.
Sports Direct meanwhile confirmed in a separate statement that it now owns 83.88 percent of Game Digital (LON:GMD).
Analysts on London-listed retailer
Peel Hunt reaffirmed its ‘hold’ rating on the mid-cap company, without specifying a target on the Sports Direct share price. According to MarketBeat, the London-listed retailer currently has a consensus ‘hold’ rating and average valuation of 350p.