Mike Ashley to cash in on Sports Direct sales hike

By Erikka Askeland
Published on Thursday 16 February 2012 00:00

AN “EXCEPTIONAL” update on third quarter sales at retailer Sports Direct will see its deputy chairman Mike Ashley “certain” of getting a multi-million pound windfall. Analysts also welcomed hints that the firm would pay out a dividend to shareholders as early as this year.

The group, which has nearly 400 stores and owns brands including Slazenger, Donnay and Karrimor, said retail sales rose 10.2 per cent to £408.6 million in the 13 weeks to 22 January, boosted by strong growth in internet trading.

Chief executive Dave Forsey said it was now “certain” of hitting a “super-stretch” target of £225m for the full year that will prompt the bonus for Ashley.

Ashley, who owns 71 per cent of the business, receives no pay but is now on course to receive six million shares, currently worth around £17m, in 2018. Shares in Sports Direct rose 5.8 per cent to 278p yesterday.

Gross profits increased 10.2 per cent to £184.4m as trading since December was better than it expected and has remained strong since the end of January.