Shirebrook’s Sports Direct has seen profits spiral by some 60% in their latest year of trading, which the firm has put down to “currency movements’ and ‘increased depreciation charges’.
A somewhat beleaguered Mike Ashley, dismissed the news saying: “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.”
The news comes as the sportswear giant appoints Jon Kempster as Chief Financial Officer.
Kempster who was group finance director at logistics and distribution group Wincanton and group finance director of industrial group Delta also worked in senior finance positions at Low & Bonar, Linden Homes and Fii Group.
Dr Keith Hellawell, chairman of Sports Direct, said: “We look forward to welcoming Jon to Sports Direct. His breadth of experience and proven track record will be a significant asset to the company.”
Kempster said: “I am really excited to be joining Sports Direct, and I look forward to working with Mike and the team.”