LONDON Oct 7 Struggling British retailer Sports
Direct said the sharp fall in the value of the pound
overnight could dent its full-year earnings forecast by 35
million pounds ($43.6 million) in the latest downgrade to its
Shares in the firm were down 9 percent at 1421 GMT, after
sterling plunged overnight.
Last month Sports Direct had forecast core earnings of about
300 million pounds for its financial year ending April 2017,
based on a pound/dollar rate of 1.30.
It said that in light of sterling's recent weakness it had
entered into a hedging arrangement however movements overnight
resulted in a crystallisation of that rate at 1.19, resulting in
a negative impact of 15 million pounds to its 2016-17 core
The firm also warned that if the pound/dollar rate remains
on 1.20 on average for the balance of the 2016-17 year its core
earnings would be hit by a further 20 million pounds.
($1 = 0.8035 pounds)
(Reporting by James Davey; editing by Kate Holton)