It has been revealed that Mike Ashley’s Sports Direct has increased its stake in the Umbro brand and has declared a holding in Dick’s Sporting Goods, the US retailer.
Sports Direct now own 11.5%, a rise from 9.5% of the Iconix Brand Group, which includes makes such as Pony, Lee Cooper and Umbro.
Commenting, Sports Direct said: “The main rationale for these stakes is to allow Sports Direct to hopefully build a relationship and develop commercial partnerships with the relevant parties. They also help the company to build relationships with key suppliers and brands.”
Other investors see Mr Ashley’s stake-building as unconventional and shareholders are questioning the owner as the company’s core UK business is missing profit targets.
Haitong Securities, the company’s house broker has estimated half for its long-term fair value and predicts further instability as figures show that shares have fallen around 40% since early December, threatening Sports Director with ejection from the FTSE 100 index of leading shares.
