One of Sports Direct’s largest shareholders "voiced concern about the retailer’s fragile relationship with sporting goods giant Nike," according to Ashley Armstrong of the London TELEGRAPH.
The investor "is concerned that Sports Direct’s growth is slowing because it does not stock enough of Nike’s latest ranges" and instead is filling stores with its own cheaper brands.
These fears "have been exacerbated by the contrasting fortunes" of JD Sports which last week upgraded profit forecasts by 10pc just six days after Sports Direct issued a profit warning in the wake of poor Christmas trading.
Sports Direct shares are 29pc "lower than a year ago."
Aviva Investors U.K. Equities Head Trevor Green said, "JD Sports is fascinating in relation to Sports Direct. JD is completely switched on, it is right at the cutting edge of athletic fashion. We are concerned with Sports Direct’s relationship with Nike. Is it getting all of the availability? A simple walk around the store will give the impression that it is an issue, there is very little in there" (TELEGRAPH, 1/16).
