Sports Direct profits tumble on House of Fraser acquisition
Sports Direct has reported a 26.8pc drop in underlying pre-tax profits to £64.4m (€71m) for the first half of its financial year following its acquisition of House of Fraser.
Underlying earnings excluding House of Fraser were up 15.5pc.
The retail group also reported a 4.5pc rise in total group revenue, driven by acquisitions and growth in premium lifestyle sales.
CEO Mike Ashley said there were "significant challenges ahead" in turning House of Fraser around.
"However, I genuinely believe we have acquired a fantastic opportunity and with the efforts of Sports Direct and House of Fraser teams, and the support of the brands, local councils and landlords, we can turn House of Fraser into the Harrods of the High Street," he said.