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Ashley’s Sports Direct International Exceeds Expectations

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.

David said:

“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.

Comments welcome.

13 comments so far

  • Paul R

    Dec 18, 2008 at 12:29 PM

    Comment #1

    Doesnt mean aythin for Newcastle !!

  • Spyro

    Dec 18, 2008 at 12:39 PM

    Comment #2

    At a time where value, security and sustainability are key factors in consumer minds, businesses such as Sport Direct were always likely to prosper.

  • sirjasontoon

    Dec 18, 2008 at 12:45 PM

    Comment #3

    Maybe not : )

  • Toon Graeme

    Dec 18, 2008 at 12:47 PM

    Comment #4

    Strange that the comminication is just the same as with NUFC ie not a lot.

    Problem is Chris Mort set the standard and left and then was replaced by numb nuts nameless lambiarse.

  • Toon Graeme

    Dec 18, 2008 at 12:49 PM

    Comment #5

    or voiceless should I say!

  • Spyro

    Dec 18, 2008 at 12:51 PM

    Comment #6

    Too right Graeme

  • Stardust

    Dec 18, 2008 at 12:58 PM

    Comment #7

    We all learn every day, seems like Ashley is starting to learn to communicate more in both businesses.

    He will have built his businesses by his quiet growth and is going through the transitional phase into owning publically owned companies – I include NUFC in that as all supporters feel they own a bit of the club.

    Hope he wins everyone back around – some on Mike – I like where we are headed, just learn to engage everyone.

  • sirjasontoon

    Dec 18, 2008 at 1:03 PM

    Comment #8

    Mike would be welcomed back if he spends and communicates and takes the club off the market..everyone deserves a second chance in my opinion and the dust is starting to settle and the players look to be playing better.

    If he gets Owen to stay as well it is showing his intent which is a good sign as well.

  • Stardust

    Dec 18, 2008 at 1:31 PM

    Comment #9

    Bloody Hell – SirJasonToon

    Is that really your post! Thats a refreshing change and a welcome one!

    As long as theres a genuine attempt to get him itll be great – thereon though its over to Owen

  • JP...from The Rock

    Dec 18, 2008 at 1:39 PM

    Comment #10

    It seems like the guy is trying TBH. I am still skeptical about Mike Ashley but I have to admit the guy is trying to get along and looking after the club with Owen’s contract talks. I think I too would give the guy a second chance but he does need to spend a little to prove to me he is fully committed to Newcastle Untied.

  • samthecat

    Dec 18, 2008 at 2:06 PM

    Comment #11

    When he is prepared to communicate to us and not the NOTW then he might have moved a step forward.

  • chuck

    Dec 18, 2008 at 2:19 PM

    Comment #12

    Same wonderfull PR from NUFC, how long does it take for the board to GET IT ?

  • Geordie Jayne

    Dec 18, 2008 at 11:04 PM

    Comment #13

    All I care about is NUFC not Cashley’s bank balance, he has not nothing, absolutely ziltch to change my mind on him.

    I won’t hold my breath for when he can do that, I want to live long


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