Sports Direct (LON:SPD) have seen shares plummet over 15 percent today, after disappointing sales in the run-up to Christmas led to the issuance of a profit warning.
The company said in a statement that they were unsure whether they would be able to hit their adjusted earnings target of £420 million and lowering the expectation to between £380 and £420 million. They have been the latest in a string of companies to blame the unseasonably warm weather for a decline in sales, with both Next and Marks and Spencer citing the same reason for disappointing Christmas figures.
Arguably, however, Sports Direct are less likely to have seen a decline in sales due to the weather, with their primary offering being sports clothing and footwear. In comparison, rival JD Sports adjusted their profit expectations for 2015 upwards by £10 million in December.
Sports Direct stock has fallen by a quarter in the last month, with over £400 million wiped off today. It is currently trading down 15.49 percent at 432.70 (1401GMT).