Sports Direct profits hit by Debenhams investment

0 Despite the profits blow total group revenues at Sport Direct were up by 3.5% at £3.4 billion

Sports Direct has blamed tough comparatives and an £85 million hit from its stake in Debenhams for dragging full-year profits down 72.5 per cent.

The sports retailer said that its pre-tax profits plunged to £77.5m in the year to 29 April, from £281.6m a year earlier.

It was impacted in part by an investment in Debenhams, having increased its total stake to 29.7 per cent during the period. The company upped its holding in the department store chain in March, bring-

ing it close to a level at which it must launch a takeover bid.

But a recent reduction in Debenhams’ value meant Sports Direct took an £85.4m hit as a result – having been offset in part by investment income. The total loss on that investment was otherwise £98.1m.

The firm also has strategic investments in Goals Soccer Centres, French Connection, and House of Fraser.

Total group revenue for the period was up 3.5 per cent at £3.4 billion.