JPM earnings

According to the latest publications, Sports Direct has posted a big drop in half-year profits after being smashed by the drop in the pound.

The retailer, which has been heavily slated for the treatment of some of its employees, said reported pre-tax profits fell 25% to £140.2m.

Sports Direct Chief executive Mike Ashley said the past six months had been “tough for our people and performance”. The company also it was enduring in its efforts to become the “Selfridges” of sports retail.

“Our UK Sports Retail business continues to be the engine of Sports Direct, but our results have been affected by the significant deterioration in exchange rates, and our assessment of our risk relating to our stock levels and European stores performance,” said Mr Ashley of the poor results.

The company recently has been in the middle of so many scandals. It started off with its unappropriate action of employees as a delegation of MPs claimed an attempt was made to record them in a private conversation while on a visit to the company’s Shirebrook warehouse.

Later on another scandal probing into the company’s accounts was launched. After that some of the senior officials have been leaving the company. Most notably Company’s Chief executive Dave Forsey stepped down was replaced by Mr Ashley, and acting finance director, Matt Pearson was replaced by another interim appointment Herbert Monteith in October.

Furthermore Sports Directs chairman, Keith Hellawell, offered to resign earlier this year, but was persuaded not to by Mr Ashley.