Recently floated Sports Direct International - owner of the Sports World chain and London's Lillywhites store - said trading in the past three months had been "exceptionally difficult" as wet weather hit sales.
The group unveiled underlying earnings of £191m for the year to the end of April, but added there would be little improvement on this in 2007-8.
The company has seen shares nose-dive from the 300p opening price on flotation at the end of February, amid warnings of slowing sales growth and the departure of chairman David Richardson, who quit just months after the stock market debut. Shares fell by 25.5 per cent, or 48.5p, to 141.5p after the announcement.
Sports Direct's 32 per cent hike in underlying earnings for the past year was marginally lower than expected by analysts, as removing £14.7m one-off profits from a property sale took the figure down to £176m - below the £180m forecast.
Outlined
But the group, which also posted underlying profits before tax up by 38 per cent to £151m for the year, outlined ambitious growth plans.
Sports Direct is to open a further 40 outlets in the UK to add to its existing 462-strong portfolio and hopes to expand into health and fitness clubs.
The group has also struck a licensing deal that will see the Lillywhites and Sports Direct stores launch across the Middle East and South Africa. Sports Direct also expects to continue on its acquisition trail, having spent £20.2m in the past year buying Kangol, the Original Shoe Company and Streetwise.
The group has bought a 60 per cent stake in outdoor leisure chain Field & Trek for £5m, and agreed to buy boxing equipment maker Everlast for £88.3m.
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