Mike Ashley admits that Sports Direct is ahead of & # 39; important challenges & # 39; is because profit is decreasing due to the costs of the acquisition of House of Fraser
- Sports Direct revealed that profits fell by 26.8 percent to £ 64.4 million
- Mike Ashley again promised to House of Fraser & Harrods of the High Street & # 39; to make
Alex Sebastian For This Is Money
Sports Direct boss Mike Ashley has admitted that the company faces important challenges & # 39; is in the turn of the newly acquired House of Fraser in the neighborhood.
The authorization came when the company revealed that its profit dropped from 26.8% to £ 64.4 million in the 26 weeks to 28 October, the period in which it had purchased the department store chain from administration.
With House of Fraser's deal, however, the deal has become much healthier, with a profit of 62.4 percent on £ 74.4 million and an underlying result, with the exception of House of Fraser, with 15.5 percent on £ 180, 3 million.
Sports Direct boss Mike Ashley said the company faces significant challenges. stands by turning over the recently acquired House of Fraser
Ashley repeated his promise to House of Fraser's Harrods of the High Street & # 39; but admits it will be a challenging process.
I have made my views clear that I believe that the previous management team at the House of Fraser traded the company while it was insolvent for a long time, & # 39; said the billionaire. & # 39; This means we have great challenges ahead of getting House of Fraser around. & # 39;
I sincerely believe, however, that we have been given a fantastic opportunity and with the efforts of Sports Direct and House of Fraser teams and the support of the brands, city councils and landlords, we can change House of Fraser into the Harrods of the High Street. & # 39;
Meanwhile, sales volume in the UK sports segment, which accounts for 62 percent of sales, increased by 0.2 percent.
Mike Ashley repeated his promise to House of Fraser's Harrods of the High Street & # 39; to make
This reflected the growth of online sales, but a drop in store sales, partly as a result of store closures and the well-documented challenges faced by retail chains.
In the update, Sports Direct also recognized £ 76.7 million in impairments related to Debenhams and other investments made by the group.
Sports Direct feels the rush of his takeover. the gain has been hit by the acquisition of House of Fraser & # 39 ;, said Neil Wilson, analyst at Markets.com. & # 39; There is clearly still serious headwind for the main street, and no way to discuss the Harrods of the main street will change fundamental structural problems. & # 39;
& # 39; CEO Mike Ashley said the previous management of HoF & # 39; the company traded while it was insolvent for a long time & # 39 ;, causing him to do a lot of clean-up. The underlying performance at Sports Direct remains solid. & # 39;
& # 39; The question is whether Ashley has picked up too much with HoF, & # 39; Wilson continued. As argued above, the arguments for the merger of Debenhams and HoF are compelling. The shares have been bounced back to act about 0.5% lower while shipping. & # 39;