Sports Direct tumbles as Ashley says profits will fall

Ashley told The Times he was concerned that the sportswear retailer was losing momentum and said he would refuse to appear before a Commons select committee in June.

He said: “We are in trouble, we are not trading very well. We can’t make the same profit as last year.

“We are supposed to be taking profits up, they are not supposed to be going down.”

The retailer, which was demoted to the FTSE 250 in the latest quarterly review, has been under the cosh since late last year, when it was hit by a damming report in the Guardian about its pay and treatment of staff, while a profit warning in January sparked a selloff in the shares.

On Monday, Ashley told Sky News he refused to face MPs in parliament to answer questions about the way Sports Direct treats its staff.

Ashley, who also owns Newcastle United football club, said he will challenge the formal order to appear before MPs, calling it an “abuse of the Parliamentary process".

Ashley has invited MPs to visit his Derbyshire warehouse facility, but they rejected the offer on the basis that it was not in line with their "commitment to transparency".

At 1035 GMT, Sports Direct shares were down 8% to 389.80p.