Jul 19, 2018
Sports Direct profits fall after £85m hit on Debenhams stake
Sports Direct has reported a sharp drop in annual profits, in part due to its exposure to struggling department store chain Debenhams. Pre-tax profits fell to £77.5m in the year to 29 April, down from £281.6m the year before. The drop was partly due to a £85.4m hit the retailer took on the value of its near-30% stake in Debenhams. Sports Direct's UK sales were down 2%, although international sales helped total group revenue to rise by 3.5%. In addition to its stake in Debenhams, Sports Direct also owns an 11% stake in House of Fraser, which recently announced a major restructuring. Speaking to the BBC's Today programme, Sports Direct's head of strategic investments, said "We hope House of Fraser will come out stronger from the restructure."
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