Shares digital

Sports Direct (SPD) 95.75p

The troubled sports retailer insists it will meet profit forecasts despite ‘increasingly difficult’ trading conditions. (Read the full story: www.sharesmagazine.com/node/2968)

Shares says: Without like-for-like sales figures, it is hard to judge the true state of Sports Direct’s trading statement. Given that market conditions are terrible and the City is still clashing with the company over its questionable corporate governance, the stock is going nowhere without a bid from founder Ashley. HOLD

FT says: Pin the tail on the donkey time for retail analysts as Sports Direct once again failed to produce industry standard metric of like-for-like sales. It also failed to give comparable sales figures to set the £280 million in context. What is clear is that the strategy of boosting gross margin – much vaunted before last year’s IPO – appears to have failed and is in retreat. The implied margin of 45% is below that of last year and the promised great leap forward in profitability looks highly questionable. A forward PE of 10 is a modest discount to the sector – too modest, in fact.