Sports Direct has warned it will miss its full-year profits forecast as worsening trading conditions and mild weather have hit its performance.
Th Mike Ashley-controlled retailer said it has “seen a deterioration of trading conditions on the high street and a continuation of the unseasonal weather over the key Christmas period”.
It added: “As a result, we are no longer confident of meeting our adjusted underlying EBITDA target, before share scheme costs, of £420m for the full year.”
Due to these factors and in “anticipation of similar trading conditions between now and the end of April” Sports Direct said it expects underlying full-year EBITDA to come in between £380m and £420m.
Last month the retailer reported a 3.6% jump in underlying pre-tax profits during its first half.
The profits warning comes after Next and Marks & Spencer’s clothing division also this week reported disappointing Christmas updates following tough Chritmas trading in the wake of lower high street footfall.
The threat of terrorist attacks and the shift to online have been cited as reasons by some for the tough conditions for high street retailers.
Sports Direct last month faced a wave of fresh controversy over its alleged employment practices. As a result, Mike Ashley will carry out a review personally of working conditions.
Ashley also pledged to pay staff above the minimum wage and vowed to make Sports Direct the best retail employer behind John Lewis.
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