Sports Direct International (SDI) is working to implement a “more tailored approach” for its European stores. Combined with unfavorable exchange rates, these unspecified changes are expected to result in a continued weak performance from this division in the medium term, the company reports as part of its results for the half-year to Oct. 23. Due to requests from investors and uncertainties ahead with Brexit, SDI has started publishing separate results for its international stores again, showing a sales increase of 66.1 percent to £330.2 million (€394.3m-$417.9m) for the half-year. That was a jump of 44.5 percent in constant currencies, and a rise of 9.4 in constant currencies and excluding the acquisition of Heatons, which added 43 stores in Ireland. Sales were up in all countries other than Austria, France and Switzerland, where the group closed its one store. Excluding Heatons and Iceland, SDI added five international stores in the six months to end with 239. The group's U.K. sports retail sales, including wholesale, were up by 7.4 percent to £1,111 million (€1,327.3m-$1,406.3m), and the entire group managed a sales increase of 14.2 percent to £1,638 million (€1,957.2m-$2,073.5m). However, SDI's underlying Ebitda was off by 33.5 percent to £145.3 million (€173.6m-$184.0m), chiefly due to the devaluation of the pound, an increase in inventory provisions, more provisions for onerous leases in its international retail business, and more investment in staff. The underlying Ebitda for the international stores was a loss of £10.7 million for the half-year, compared with profit of £2.4 million. The group purchased the 49 percent it did not already own in its Portuguese retail business during the first half for €5 million, but added that it decided to take a pause on actively pursuing strategic acquisitions. SDI, which has come under scrutiny in the last year over alleged issues with work practices and corporate governance, ended the six months with net profit down by 36.6 percent to £93.4 million. It gained £160.5 million (€191.8m-$203.2m) on sales of strategic assets including a package in JD Sports Fashion.

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