Sports Direct to issue profit warning

Sports Direct is expected to warn that it will miss 2008 earnings targets when it unveils full-year results later this month. Retail sources said that trade at Sports Direct had been severely affected by wet weather in the past eight weeks, with like-for-like sales thought to be down by double digits on the same period in the previous year.

Even though the group is only two-and-a-half months into its the financial year, which runs to the end of April 2008, it will be difficult to recoup lost sales from the last two months. Merrill Lynch, Sports Direct's broker, is forecasting 2008 earnings before interest, tax, depreciation and amortisation of £250 million. However, retail experts believe the figure is way off the mark and Sports Direct will be lucky to achieve more than £210m-£220 million.