Cautious Mike Ashley sees profits boom across sprawling UK and Irish retail empire

Mike Ashley’s retail group includes the Heatons department store chain in Ireland

Mike Ashley has seen a strong performance from his shops as they reopened after Covid lockdowns.

British businessman Mike Ashley’s sprawling retail group – which includes the Heatons department store chain in Ireland – has reported a near 62% rise in first-half earnings, driven by a strong performance from its shops as they reopened after Covid lockdowns.

Earnings at Frasers – which was formerly called Sports Direct – were also helped by online growth and the opening of new stores across its Flannels clothing chain, which has a shop in Belfast.

Frasers is pursuing an "elevation" strategy to take its business upmarket. Other brands it owns include House of Fraser, Jack Wills and Sofa.com.

It said it was cautious on the outlook, given macroeconomic headwinds on the horizon in the form of cost increases, supply chain issues and potential squeezes on consumer spending power.

There is also still the risk that measures to curb Covid-19 could adversely affect the outlook with restrictions returning, including lockdowns in mainland Europe.

The group reported adjusted pre-tax profits of £186.8m (€218.5m) for the six months to October 24, up from £115.5m a year earlier. Group revenue rose 23.6% to £2.34bn.

It expects full-year profits of between £300m and £350m.

Heatons was acquired by Mr Ashley’s Sports Direct International – now Frasers – back in 2016. Sports Direct had owned 50% of Heatons since 2010 and more than 42% since 2007.

- Reuters and Irish Examiner