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Sports Direct storeImage copyright PA

Sports Direct has reported a sharp drop in annual profits, in part due to its exposure to struggling department store chain Debenhams.

Pre-tax profits fell to £77.5m in the year to 29 April, down from £281.6m the year before.

The drop was partly due to a £85.4m hit the retailer took on the value of its near-30% stake in Debenhams.

Sports Direct's UK sales were down 2%, although international sales helped total group revenue to rise by 3.5%.

In addition to its stake in Debenhams, Sports Direct also owns an 11% stake in House of Fraser, which recently announced a major restructuring.

Speaking to a news media's Today programme, Sports Direct's head of strategic investments, said "We hope House of Fraser will come out stronger from the restructure."

Mr Rowley also told the programme that "retailers need to work together", otherwise "Amazon's going to eat your lunch".

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