Sports Direct International Plc. UK reported a decrease of 29.9% in full year underlying earnings. The discount sports retailer does not predict the trend to change in the new fiscal year citing the worst current trading conditions it has experienced in the past 25 years as the primary culprit.
The company, controlled by Mike Ashley and his 70% stake, also blamed the English National Teams failure to qualify for Euro 2008 and the poor retail market for the weak performance.
For the year ended April 27, 2008, the group made underlying EBITDA of £150.2 million ($301.5 mm) against a restated EBITDA of £214.1 million ($429.8 mm) a year ago. Results were slightly ahead of a previous prediction. Group revenue fell 6.5% to £1.26 billion ($2.53 bn).
“Retailing on the high street is the worst for the 25 years we've been doing it,” said Mike Ashley, deputy chairman, in a conference call with investors. “That's why we think to be slightly up on last year in the first two months (May and June) is actually quite a phenomenal result. If you're managing to keep your head above water in an impossible environment I think that's a very respectable result.”
