Good news today for Newcastle United owner Mike Ashley’s Sports Direct International sportswear empire, as the company has exceeded expectations with earnings up more than 7% to £89.9M in the 26 weeks to October 26th.
Mike Ashley – Sports Direct International exceeds expectations
Sports Direct expects to earn £135M for the full fiscal year, as the company has squeezed efficiencies from the business and draws in customers with some good offers.
UK retail revenues fell 1.6 per cent to £510.1M, but Sports Direct, which owns brands such as Slazenger, Dunlop and Kangol, has described their performance over the last two quarters as robust.
Chief executive David Forsey expects the current environment to last well into next year, but their business since the end of October has been in line with their expectations, which is good.
“This has been achieved predominantly by ensuring we continue to offer great value to our customers.”“We believe our back to basics strategy will continue to deliver value for our shareholders,”.
“Sports Direct’s focus on efficiencies, tight cost control and maintaining prudent stock levels had helped it absorb higher costs such as energy, fuel and commercial rents.”
Sports Direct has 63 overseas outlets, and is now looking to expand into the emerging Chinese market, and has recently signed a deal with retailer ITAT to sell its Dunlop and Lonsdale products there in February of next year.
The company has been criticized for its communications with investors, but said it is reviewing the information it gives to the market to “with a view to adopting a more conventional approach in future”.
It looks like it’s not only at Newcastle United that Mike and his people don’t communicate well. Sports Direct shares were up more than 10% following the results.
David Forsey continued:
“We’ve seen good performance for a few weeks now, and that seems to make us a bit unique – we seem to be bucking the trend.”
“The rulebook has been thrown out the window a long time ago, we just have to see how things develop,”
It’s good that Mike’s company is doing well, and maybe he can now give Joe a little more money in January.