Sports Direct sees profits slump 51%

Sports Direct, which is the UK’s largest sports retailer, said its pre-tax profits plummeted by 51.1% to £85 million, and said trading conditions were the most challenging it had ever experienced.

Full-year sales slumped by 6.5% to £1.26 billion.

The retailer, which owns Lillywhites and the Sports World chain, blamed last year’s wet summer and England’s failure to qualify for this year’s European Championships.

The company, which is managed by billionaire Newcastle United owner, Mike Ashley, saw its shares dive 9.5% following the news.

Mr Ashley founded the company in the late 1970s and still controls 70% of the company. He made £929 million when the company made its debut on the London Stock Exchange on 27 February 2007.

Dave Forsey, the company’s chief executive, said the challenging trading environment has inevitably had an impact on our results.

The company added that conditions are expected to deteriorate in the short-term as consumers reduce their spending due to rising food and fuel costs.

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