Sports Direct's share price had its biggest increase since 2009 despite terrible results

 
Helen Cahill
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Sports Direct Founder Faces Commons Select Committee Over Working Conditions
Sports Direct has done surprisingly well in trading today (Source: Getty)

It's been a very weird day for Sports Direct.

7 July 2016 @ 2:15pmSports Direct Intl (SPD)

The retailer's shares climbed by 16 per cent at their peak today - despite the company posting "disappointing" results, with annual profits down 8.4 per cent.

Even the company's chief executive, Dave Forsey, admitted the situation was bad.

Forsey said: "The group has delivered a disappointing full year financial performance, impacted primarily by a tough trading environment in the second half across our sports retail business."

In afternoon trading, the share price had settled down to 285p, 2.55 per cent above its previous closing price.

Nicholas Hyett, equity analyst at Hargreaves Lansdown, said: "The group expects the Brexit vote to act as a drag on consumer confidence going forwards, adding to existing problems with high street footfall.

"Sports Direct are heavily exposed to the weakness of the pound versus the US dollar, and are unhedged, which will weigh on gross margins."

Hyett said the group "continues to be distracted" by problems with working conditions in its Shirebrook warehouse in Mansfield, which sparked a select committee inquiry.

Hargreaves Lansdown said, however, that Sports Direct hadn't done as poorly as many had predicted.

The company did reassure investors that it would not go private, and that it may buy back shares instead, possibly explaining the early share price rise.

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