Ashley humbled as profits fall 67pc

SPORTS Direct boss Mike Ashley was dealt another humiliating blow this week as profits at the retailer plummeted by 67pc to £46m in the six months to the end of October.

The setback adds to a week of embarrassing defeats for the tycoon, after independent shareholders blocked a proposal to hand his brother £11m in back pay.

Despite the poor results, Ashley was optimistic about plans for a new format of ‘flagship’ stores, in a bid to become ‘the Selfridges of sport’.

Ashley, chief executive, said: ‘Our strategy is delivering spectacular trading performance within our flagship stores. We intend to open between ten and 20 new flagship stores next year.’

The retail tycoon’s attempt to gloss over the dismal set of figures failed to reassure investors, with Sports Direct’s shares ending the day down 2.2pc, or 8.5p, at 374.9p.

Nicholas Hyett, equity analyst at Hargreaves Lansdown, said : ‘Mike Ashley has described trading at the new format stores as “spectacular”, but it’s difficult to see evidence of that in the numbers.

‘Improved profits are being driven by cost cuts rather than sales growth, which is actually negative in the UK.’