Sports Direct issues shock profits warning due to ‘deterioration of trading conditions’

Campaigners sing a hymn about exploitation outside Sport Direct store in Mansfield
Campaigners sing a hymn about exploitation outside Sport Direct store in Mansfield

Sports Direct has issued a shock profits warning after a ‘deterioration of trading conditions’ and ‘unseasonal weather’ over the Christmas period.

The Shirebrook-based retailer issued a stock market statement today (Friday Jan 8) stating they are ‘no longer confident’ of meetings its target for underlying profits of £420million.

The statement says: “Since our interim results on 10 December 2015, we have seen a deterioration of trading conditions on the high street and a continuation of the unseasonal weather over the key Christmas period.

“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.

“In light of these factors, and in anticipation of similar trading conditions between now and the end of April, management’s current expectation for the full year is for adjusted underlying EBITDA (before share scheme costs) of between £380m and £420m.”

The announcement comes after recent criticism following a Guardian national newspaper investigation which effectively found that it pays temporary workers below the national minimum wage.