Sports Direct issues profit warning
Again, we're looking at a company saying it is all the fault of 'unseasonably warm weather'. Just you watch.
Shares, as a result, have dropped by 12%, which equates to somewhere in the region of £400m being wiped off the value of Sports Direct.
"Since our interim results on 10 December 2015, we have seen a deterioration of trading conditions on the high street and a continuation of the unseasonal weather over the key Christmas period,” the company said.
Now, given that Sports Direct don't necessarily rely on selling things that rely on colder weather, some analysts are a little sceptical about all this nonsense about warmer weather hurting their sales. A lot of the sports clothing on sale at Sports Direct should mean that they're actually rather in demand over a milder Christmas.
Sports Direct have an image problem which they should be concerned about. A lot of bad press has focused on the company's use of zero hour contracts, but more pertinently for shoppers, they're bored of going to a shop which has labels on everything that says 60% OFF! and the like, and they think that the deal isn't real. The shops are a bit too much of a jumble sale for others too.
The company have said that they're going to start treating their staff better, but they need to fix the other problems too, if they want to get back in the game which is currently being bossed by JD Sports, Foot Locker, and the like.
TOPICS: High Street News