Sports Direct hurt by wet weather

Sports Direct International, majority-owned by billionaire Mike Ashley, has announced that sales are down 7% to £668 million. Profits slumped 35% to £52 million in the six months to 31 October.

Mr Ashley, who purchased Newcastle United earlier this year, holds 68% of the stock and is expected to take the business private, bringing an abrupt end to a run on the stock market. He said he has ‘asbolutely no’ plans to buy up the few shares he does not own.

He blamed the City for for undervaluing his business and said the wet summer weather were reasons for the poor results. In addition, England’s failure to qualify for next year’s European Championship means that next year’s revenue would be between £30 million to £70 million lower.

Mr Ashley added that the City has completely over-reacted to a couple of events that are not in Sports Directs power’.

It is believed that Mr Ashley could step up to executive chairman, but mentioned that the company is still ‘finding the right structure and the right person’.

Sports Direct’s shares floated at 300p in early 2007, however, at the close of play on Tuesday, they were just 84.25p.

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