Shares in Sports Direct International nosedived despite the sportswear empire posting a 14% increase in pre-tax profits.
The company, controlled by founder and Newcastle United owner Mike Ashley, was reporting its first interim results since being elevated into the FTSE 100 index in September after a 70% rise in its share price.
The figures for the 26 weeks to October 27 show revenues across the group increased to £1.34 billion, a 23.5% rise from the £1.08bn achieved in the same period in 2012. Pre-tax profits climbed from £125.2 million last year to £143.1m.
Despite the positive figures, shares in the retailer which operates more than 400 stores across the UK fell 12% after the results missed the elevated expectations of some analysts.
Sports retail revenues increased 13.4% to £903.3m in the half-year, driven by online growth of 43% to £158m.
The company’s brands arm, which includes Slazenger, Donnay and Karrimor, saw revenues decrease slightly to £106.2m.
Sports Direct has credited much of its recent success to the positive impact a lucrative bonus scheme, which recently rewarded around 2,000 staff with shares worth more than £68,000, has had on the bottom line.
The latest figures keep the company on track to meet targets under a new four-year bonus scheme which is due to pay out in the summer of 2015.
CEO Dave Forsey said it had been another “strong” trading period for the company.
He said: “While we retain the ability to invest in margin, inventory and group marketing to deliver long-term sustainable growth, the board is confident of achieving at least our full-year internal underlying EBITDA (earnings before interest, taxes, depreciation and amortisation) target of £310m, before the charge for the employee bonus share scheme.”
Fellow high street retailer SuperGroup which produces Superdry branded clothing also updated and said it had made “progress on all fronts” during the half-year period to October 27.
Group revenues climbed 21.4% to £192.1m in the period, while underlying pre-tax profits before exceptional items increased by 21.8% to £17.9m.
Taking into account one-off costs, including a £1.6m relocation charge and £2.1m payment to buy out a Spanish distribution agreement, pre-tax profits were down 28.8% to £9.9m.
However, CEO Julian Dunkerton said the company had enjoyed a strong period during which sales derived through digital channels continue to grow.
“In a year the group is focusing on significant infrastructure investment our trading momentum has continued with strong increases in revenue and underlying profit, giving us confidence for the future,” he said.
“E-commerce continues to thrive and international sales represented a greater proportion of internet sales than the UK, indicating strong global demand for the brand.”
Meanwhile, menswear specialist Moss Bros is continuing to ramp up its online operation after year-on-year sales soared by almost 200%.
The firm has seen e-sales grow by 194% in the 45 weeks to December 7 after adding websites in Ireland, Sweden and Denmark in the second half of the year. The roll-out will continue with a new Australian site next year.
Across the group, total sales in the period were 1.8% ahead of the year previous, and the company said trading was in line with expectations.
Chief executive Brian Brick said: “We continue to develop the business by leveraging the strength of our brands and our operational capabilities. The board remains confident in the outlook for the full year.”