Mike Ashley’s Sports Direct is set for a major hit according to Goldman Sachs.
Goldman Sachs are joint brokers for Sports Direct and they have predicted that trading by the sports retailer has been so poor, the company look certain to announce their first ever drop in sales since being floated on the stock market.
The annual sales will fall by around 1.2% to below £2.7billion according to Sachs, with the figures set to be made public by Sports Direct in July.
The latest news saw Sports Direct shares fall further and currently they are trading at around 350p, compared to 805p only nine months ago – plus now priced at over 60% lower than their all time high of 922p back in April 2014.
On the back of these projected sales figures, Goldman Sachs expect Sports Direct profits to also fall, likely to be by at least 7%. On the back of this news, the brokers have removed SD from their ‘buy’ list.
It is not shaping up to be a great May for Mike Ashley, with news of Sports Direct’s falling sales and profits coinciding with him masterminding Newcastle’s second relegation in the space of seven years.
Alongside this was news yesterday that Rangers had initiated court proceedings against Mike Ashley, Sports Direct and a number of former Rangers directors, including Ashley’s right hand man Derek Llambias.
When the Newcastle United accounts for 2014/15 were recently filed and made public, they stated that after years of free advertising and promotion through Newcastle United, Sports Direct were now going to be paying for those services.
However, no confirmation as yet of what the figure will be, or if they will now be expecting a large discount due to relegation….