Sports Direct’s shares have plunged by five per cent following a pessimistic profits forecast by brokers.
Despite the embattled company’s much-anticipated annual general meeting (AGM) last week, it seems Mike Ashley has been unable to restore confidence in his sportswear retailer.
Its in-house broker Goldman Sachs cut its earnings forecast by a fifth yesterday, causing stock prices to dive 20.2p to 286p.
This follows Goldman’s decision to remove its buy rating for Sports Direct back in May, and replacing it with a sell rating just a month later.
Ashley and Sports Direct chairman Keith Hellawell promised to make significant changes to company practices at last week’s AGM, attempting to quash the wavering support of shareholders.
Hellawell faced opposition to his reappointment from independent shareholders, but was saved by Ashley’s majority stakeholder vote.
The billionaire’s difficulties doesn’t seem to be letting up, as he faces further pressure from MPs and shareholders to enforce changes and his historically fractured relationship with City analysists continues to cause the company grief.