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Amusing Sports Direct claim as revealed profits have fallen by massive 59%

2 years ago
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Sports Direct have seen a crushing fall in profits in the last financial year, dropping by a huge 58.7%.

Predictably, Mike Ashley and SD have tried to put it all down to the problems they have experienced post-Brexit, with the pound so weak against the dollar, but just as importantly is surely the fact that the Sports Direct name has become a byword for everything that is wrong with how a company operates, particularly when it comes to how it treats its staff.

Amusing then to see Sports Direct Chairman declare on the back of these very poor results:

“It is my firm belief that Sports Direct is a company of which Britain can rightly feel very proud.”

Meanwhile Mike Ashley claimed that ‘Sports Direct is on course to become the Selfridges of sport’.

These latest financial figures come only days after Mike Ashley used Rafa Benitez and his players to promote the Sports Direct brand by getting them to do a personal appearance at an SD store in Dublin.

More massive free promotion provided by Newcastle United to try and help prop up the ailing brand.

Newcastle United had declared in 2016 that the free advertising and promotion provided by the club was coming to an end, with Sports Direct agreeing to pay a market rate as from last season (see HERE).

However, when Newcastle United released their latest financial figures in April 2017, it appears that this decision had been reversed (see HERE) and the free promotion of Ashley’s retail empire is continuing beyond the first decade of his NUFC ownership.

Sport Direct Chairman Keith Hellawell:

“It is my firm belief that Sports Direct is a company of which Britain can rightly feel very proud.”

Mike Ashley, Chief Executive, said:

“Sports Direct is on course to become the “Selfridges” of sport by migrating to a new generation of stores to showcase the very best products from our third party brand partners. We have invested over £300m in property over the last year, and I am pleased to report that early indications show that trading in our new flagship stores is exceeding expectations.

We will continue to invest and make decisions for the long term, whilst trying to conservatively manage the currency volatility that is reflected in our full year results. As previously announced, the devaluation of Sterling against the US dollar has led to a significant impact on EBITDA and profits in FY17. We have put in place hedging arrangements to minimise the short-term impact of currency volatility, but like many UK retailers we remain exposed to medium / long term currency fluctuations. Our results were also impacted by provisions and depreciation charges.

I would like to thank all our people at Sports Direct for ensuring that we continue to move forward together whilst elevating our retail proposition.”

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