Sports Direct flags potential financial impact of Brexit

Retailer Sports Direct International yesterday warned of a possible hit to its finances over currency volatility following the EU referendum result.

Sports Direct says market volatility is likely to have an impact on purchases. Picture: Lisa Ferguson

The company said that it noted the “associated market volatility and in particular material changes to sterling / dollar exchange rates, and the lack of transparency as to those rates in the short to medium term”. It said these factors are likely to impact purchases for which the company does not currently have hedging in place for the 2017 financial year and beyond.

“The company continues to assess the impact of the referendum and will update the market further on announcement of the preliminary results on 7 July,” it added.

MPs are currently investigating working practices at Sports Direct’s warehouse, including the use of zero-hours contracts.