Sports Direct Slumps as Retailer Delays Results on Auditing

Sports Direct International Plc shares headed toward a seven-year low after the U.K. sports-apparel retailer delayed publishing its results as auditors increase their scrutiny of its accounting, Bloomberg News reported. The U.K. retailer said Monday it needs more time to compile information as regulators review Grant Thornton’s audit of its fiscal 2018 results, and that the review may affect its financial guidance. The shares fell as much as 14% in morning trading in London. Sports Direct cited the complexity of integrating the House of Fraser department-store chain and “current uncertainty as to the future trading performance of this business.” The delay adds to the list of corporate-governance questions that have plagued the company, controlled by billionaire founder Mike Ashley. Chairman Keith Hellawell resigned in December, following criticism that he failed to challenge management’s unorthodox style and put shareholder value at risk. Read more