Sports Direct International clarified that Agent Provocateur has been acquired by Four (Holdings) Ltd, a company in which it has a 25% stake, and warned the euro’s slide against the dollar would impact gross margin.
This clarification followed recent press reports that had incorrectly stated that Sports Direct had acquired Agent Provocateur.
Further reports stated Sports Direct paid £35m two years ago for a stake in Four Marketing. In fact, the amount paid £8.75m.
“Separately in response to certain enquiries received by the Company in relation to currency, we continue to believe the devaluation of the Euro against the Dollar will impact on gross margin,” Sports Direct said.
“Our Euro/Dollar exchange rate is currently hedged at 1.46, which is due to expire at the end of FY17 and we currently have no Euro/Dollar hedging in place for FY18.”
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