Sporting goods and clothing retailer Sports Direct PLC (LON:SPD) has warned that it continues to believe the devaluation of the euro against the dollar will impact on its gross margin.
The company said its euro-dollar exchange rate was currently hedged at US$1.46 and that it had no hedging in place for 2018. The euro is currently trading just under $1.06 against the dollar.
The firm issued a profit warning after the post-Brexit slump in sterling last year.
In early trading, Sports Direct shares were down 1.6%, or 4.8p at 294.6p.
The currency comments came in a statement in which the group also issued a clarification on its links to the acquisition last week of struggling lingerie company Agent Provocateur.
The FTSE 250-listed group, said: “A number of recent press reports have incorrectly stated that Sports Direct has acquired Agent Provocateur. In fact, Agent Provocateur has been acquired by Four (Holdings) Limited, a company in which Sports Direct has a shareholding of 25%”.
The firm also noted that some reports had also stated that Sports Direct paid £35mln two years ago for a stake in Four Marketing, when, in fact, the amount paid for the shareholding in Four (Holdings) Limited was £8.75mln.