1. Sports Direct Plc
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2. Business model

3. Storefront/instore strategy
Displays high-end brands at the front of the store
Displays high margins proprietary secondary brands at the back of the store
Slazenger, Everlast, Lonsdale, Karrimor
Targets lower end of market
468 UK stores/289 overseas stores

4. The internet is killing bricks and mortar retailers

5. Internet + bricks and mortar best proposition
Best online retailers have bricks and mortar stores
Some consumers want to hold and feel sporting goods before purchasing
Sports Direct has shorter leases

6. Too reliant on big name sports brands
eg. Nike, Adidas

7. Sports Direct creates value for sporting brands
Sells off excess inventory
Property purchase scheme will help store profile
“Selfridges of Sport” layout in larger stores
Bosses hates sales decreases

8. JD Sports is a better retailer than Sports Direct

9. Sports Direct complements JD Sports
JD Sports: small stores with high footfall (and rents)
JD Sports: new and exclusive ranges

10. But Mike Ashley is a ******!

11. Mike Ashley is a successful founder CEO with skin in the game
Started the chain in the 1980s
Excellent overall record of acquisitions, share repurchases, investments in retailers
Owns 58% of shares outstanding
Inspires loyalty amongst many of his top managers

12. International expansion

13. International expansion has been hitherto unsuccessful and this appears unchanging
Latest investment appears characteristic Mike Ashley - assets of $101 million at a discount to book value of $126 million
Since 2007 £212 million invested in overseas expansion
Resulted in £97 million loss

14. Valuation

15. Sports Direct is cheap Sports Direct is available for 404p stock price
x 540m shares outstanding = £2.17 billion
Last year’s profits are £134 million (2016 = £245 million)
A buyer is paying 7.5 times an already-depressed EV/EBITDA