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You can find the current article at its original source at http://www.theguardian.com/business/2015/dec/11/sports-direct-shares-fall-analysts-cut-forecasts
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| Version 1 | Version 2 |
|---|---|
| Sports Direct shares fall again as analysts cut forecasts | Sports Direct shares fall again as analysts cut forecasts |
| (about 3 hours later) | |
| Sports Direct shares have fallen for a second day after the Guardian’s investigation into its pay and working conditions and poor financial results. | Sports Direct shares have fallen for a second day after the Guardian’s investigation into its pay and working conditions and poor financial results. |
| After an 11% fall on Thursday, the retail group had dropped nearly 3% to 576p at its lowest point on Friday morning, wiping millions more off the value of the company and founder Mike Ashley’s stake. The shares closed down by more than 1% at 586p. | |
| Related: Revealed: how Sports Direct effectively pays below minimum wage | Related: Revealed: how Sports Direct effectively pays below minimum wage |
| Analysts said Ashley had not appeared at a City presentation following the company’s results, unlike the previous year. Retail specialist Nick Bubb said: “We arrived at the 9am Sports Direct analysts meeting half an hour late ... and when we got to the presentation room there was no sign of Mike Ashley. | Analysts said Ashley had not appeared at a City presentation following the company’s results, unlike the previous year. Retail specialist Nick Bubb said: “We arrived at the 9am Sports Direct analysts meeting half an hour late ... and when we got to the presentation room there was no sign of Mike Ashley. |
| “Last time, the great man was himself late arriving, after a late-night session with his property adviser, but he did eventually turn up to delight analysts with his views on online retailing and Europe. This time he seemed to be keeping a low profile, for perhaps understandable reasons, given the recent bad press, although he apparently was in London for investor meetings later in the day.” | |
| On Wednesday, the Guardian revealed that thousands of workers at its warehouse were being effectively paid below the minimum wage, prompting Simon Walker of the Institute of Directors to call the company “a scar on British business”. | |
| Thursday’s results showed its half-year revenues were below expectations at £1.43m while earnings of £218.5m missed forecasts by about 2%. This has prompted analysts to cut their recommendations on the company. Goldman Sachs, its joint broker, reduced its price target from 850p to 725p on Friday and cut its full-year profit forecast by 6.6%. Citigroup, the company’s other broker, has cut its price target, from 900p to 800p. | |
| The Guardian investigation revealed that the retailer’s temporary warehouse workers were subjected to a regime of searches and surveillance. | |
| Walker said: “Unfortunately the actions of Sports Direct will leave a scar on British business. IoD members share the public’s outrage.” | Walker said: “Unfortunately the actions of Sports Direct will leave a scar on British business. IoD members share the public’s outrage.” |
| Some shareholders have expressed unease that the company’s behaviour and reputation were hitting its share price. The shadow chancellor, John McDonnell, said HMRC should investigate if the allegations about the minimum wage were true. | Some shareholders have expressed unease that the company’s behaviour and reputation were hitting its share price. The shadow chancellor, John McDonnell, said HMRC should investigate if the allegations about the minimum wage were true. |