SPORTSWEAR retailer Sports Direct has posted a 12.2 per cent rise in sales during the summer, as the lack of footballing success for England in the World Cup weighed on its sales growth.

The firm, founded by retail tycoon and Rangers investor Mike Ashley, took £711.2 million through its tills in the 13 weeks to July 27, while gross profits rose 11.8 per cent to £301.2m.

The pace of the firm's sales growth has slowed from a 23.8 per cent rise in the year to April 27.

Chief executive Dave Forsey said that trading had been in line with the company's expectations "with some stronger weeks offset by England's disappointing World Cup performance".

"Within sports retail we continue to focus on upgrading our store portfolio and integrating recent acquisitions, including Eybl and Sports Experts in Austria," he added in a statement yesterday.

The company said its margins were down about 10 basis points, having taken a knock from its decision to mark down stock in Austria following the acquisition of Eybl in May 2013.

Mr Ashley's firm has in recent weeks shifted employees in the Rangers retail stores onto the Sports Direct payroll.

The group has been overseeing the club's merchandise sales since Rangers was rescued from administration in 2012, when Mr Ashley took a minority stake.

The Newcastle United owner has also been linked to Rangers' imminent £4m fundraising. New shares in the troubled club will be allotted on September 18, providing enough investors can be found.

Mr Ashley paid a reported £1 for the right to rename Ibrox Stadium two years ago.

Shares in the FTSE 100-quoted Sports Direct fell 1.7 per cent yesterday to 708p as the overall index closed broadly flat.

Sports Direct's smaller premium lifestyle division, which owns Cruise and USC outlets, fared less well with an 8.8 per cent drop in sales to £52.1m over the summer while gross profits fell 11.6 per cent to £20.5m.

Its brands business, which has 270 licences to sell sporting goods from the likes of Dunlop and Slazenger, also posted falling sales, with revenues down 7.1 per cent to £47.3m and gross profits down 4.7 per cent to £20.3m.

Sports Direct, which has 400 stores across the UK and 270 more in Europe, expects to bring in underlying earnings of £360m during 2014, up from £331m in the year before.

Freddie George, an analyst at Cantor Fitzgerald, said the trading update was "mixed with the company seeing a satisfactory performance from its core Retail business but disappointing results from the premium and brand divisions", though he raised his full-year earnings forecast to £368m following the announcement.

Retail analysts at investment bank Jefferies said: "Ultimately we believe the group's UK positioning is strong enough to allow an attractive earnings delivery while at the same time preparing for a more meaningful international presence."

The company held its annual shareholder meeting in Shirebrook in Derbyshire yesterday.

Investors approved all resolutions, though 12.5 per cent of the shareholders who voted rejected the firm's executive pay report.

In July, Mr Ashley conceded defeat in a battle with shareholders over the firm's controversial bonus scheme, which would have handed £200m to him and Sports Direct's staff.

Mr Ashley, who sits on the Sports Direct board as deputy chairman, has said he would not attempt to claim another bonus until the current share scheme runs out in 2019.

His reappointment to the board was backed by 88 per cent of investors yesterday. Mr Ashley, who holds a 57.7 per cent stake, abstained from this vote.