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Sports Direct's story of easy growth seems to be over

Discussion in 'Market News' started by Lily, Jan 8, 2016.

  1. Lily

    Lily Forum Member

    Aug 29, 2015
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    Should a mild winter really upset trading – and doesn’t the company have a strong online business to capture the switch to online shopping?

    Few of Sports Direct’s external shareholders have ever been impressed by its corporate governance but most have consoled themselves with a look at the share price, which went up in spectacular style for more than half a decade. You could have bought a slice in Mike Ashley’s creation at 50p in November 2008 and sold at 900p in April 2014.

    But now? Friday’s profits warning – issued less than a month after half-year profits missed City forecasts – has taken the share price below 450p for the first time since mid-2013. That’s not a surprise because the statement, blaming slower sales on unseasonal weather and a deterioration of trading conditions in the high street, raises more questions than it answers.

    Related: Sports Direct issues profit warning after poor Christmas sales

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