Sports Direct set to reveal 55pc jump in profits

Sports Direct (LON: SPD) is set to reveal strong profits this week, with underlying profits expected to surpass £100 million.

Profits are expected to jump 55.1 percent from the £66.5 million in profits that were seen in the previous year.

Results from the sports retailer took a hit in the 2016-17 financial year. Thursday is expected to see profits of £103 million after tax.

“The success of the England football team and a bout of nice weather will have done the group a favour, but the plan to become the ‘Selfridges of sport’ still needs to deliver results,” said George Salmon, an equity analyst at Hargreaves Lansdown.

“The last six months has also seen changes in the stakes Sports Direct owns in other businesses. The group now owns 29.7 percent of Debenhams (LON: DEB) and has sold its stake in US shoe retailer Finish Line. With Debenhams having had a very tough time this year, watch out for commentary on the strategic investment portfolio,” he added,

Results for the group will be revealed on Thursday.

The group’s chief executive, Mike Ashley, has faced several controversies in the past year including issues around working practices. 

Shares in Sports Direct are currently trading down 1.23 percent AT 425.00 (1324GMT).