Sports Direct shares hit amid staff treatment row
SHARES in Sports Direct fell 10 per cent yesterday on disappointingly flat revenues – as the sports retailer controlled by Newcastle United FC owner Mike Ashley had to defend itself against renewed allegations of poor treatment of its staff.
Halftime revenues edged up just 0.1 per cent to £1.4 billion in the six months to 25 October. Pre-tax profits up 25 per cent at £187.3 million also missed City expectations, and the shares closed down It came a national newspaper alleged extended security checks on some Sports Direct warehouse staff meant they were left earning less than the minimum wage. The retailer responded yesterday that it had cut search times. Dave Forsey, Sports Direct’s chief executive, said casual workers were an integral part of its workforce, and it complied “fully with all applicable legal requirements”. He said: “We don’t necessarily recognise the company that is being portrayed and we need to do a better job in making sure our story gets across.”