Christmas Comes Early for Mike Ashley

The Week: Sports Direct founder is celebrating a strong end to the year for his retail empire, but Morningstar columnist Rodney Hobson thinks the 30% share price price is overdone

Rodney Hobson 20 December, 2019 | 11:32AM

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What a reversal of fortunes there has been in the sporting world. Sports Direct - now amusingly renamed Frasers (FRAS) to mark the impending closure of many of the House of Fraser stores - has had more than its shares of bad publicity in recent years on issues such as chief executive Mike Ashley treating it as his personal fiefdom, maltreatment of warehouse staff and poor customer service in its retail outlets.

Direct Hit

But Christmas has come early for Ashley, and not just because Newcastle United has had a better set of football results. Figures for the 26 weeks to October 27 were truly remarkable.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
FirstGroup PLC36.08 GBX-3.11
Frasers Group PLC310.80 GBX0.97
JD Sports Fashion PLC648.00 GBX-0.43
Pearson PLC558.80 GBX1.75

About Author

Rodney Hobson

Rodney Hobson  is a columnist for Morningstar.co.uk and author of several investing books, including The Dividend Investor and How to Build a Share Portfolio.

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