Mike Ashley's Frasers Group confirms retail expansion in Cork and Newbridge

The group, which also owns Heatons, expects to grow adjusted profit before tax to between €528m and €586m next year

Fraser Group’s chief executive Michael Murray said he’s not yet seeing consumers opt more for Sports Direct own brands as they battle with the higher cost of living.

Frasers Group, led by British billionaire retail magnate Mike Ashley, confirmed expansion plans for Cork, Newbridge and other parts of the Republic as it predicts profit growth despite headwinds.

The group, which owns Heatons in Ireland said it has secured sites in Cork, Dublin, and Kildare for the expansion of its Flannels, Frasers and Sports Direct brands.

“We are delighted to report a record-breaking year for Frasers Group with adjusted profit before tax of £345m (€405m), despite the significant economic headwinds and well-chronicled challenges across the sector,” the company said in a statement.

Challenges facing many retailers including Frasers Group are supply chain pressures and the increased cost of living, which the company said could have an impact on business potential.

Frasers Group expects to grow adjusted profit before tax to between €528m and €586m in 2023 despite these economic factors.

The group’s chief executive Michael Murray said he’s not yet seeing consumers opt more for Sports Direct own brands as they battle with the higher cost of living.

Mr Murray, Mr Ashley’s 32-year-old son-in-law, became CEO in May while his predecessor stepped back into the role of executive director.

“It's clear that our elevation strategy is working and we are building incredible momentum with new store openings, digital capabilities and deeper brand partnerships across all of our divisions,” said Mr Murray.

A recent acquisition drive by the company is set to fuel this growth. In February, Ashley’s company bought British clothing and furniture retailer Studio Retail out of examinership for a reported £27m (€31m).

This was followed by the acquisition of embattled British fast fashion company Missguided, which the Fraser Group reportedly bought out of examinership for £20m (€23m) deal. 

The company also acquired Danish sport retailer SportMaster to build on its presence in Europe.

Retail entrepreneur and former Newcastle United owner Mike Ashley whose Frasers Group is expanding in Cork, Dublin, and Newbridge. File picture

Frasers Group raised its stake in the German fashion retailer Hugo Boss and acquired a 29% stake in Australian fashion marketplace MySale in addition to its acquisitions.

The group said it will also continue to divest in assets such as Bob's Stores and Eastern Mountain Sports in the US.

Current economic pressures may pose a threat for retailers such as Ashley’s company, but its success during the pandemic has provided a cushion for any oncoming blows.

European retail revenue for the Fraser Group increased by 28%. The company said this was largely due to strong growth in Ireland and the lockdowns experienced in the prior year.

Frasers' larger rival JD Sports Fashion posted annual profit that more than doubled from last year to €784m on strong demand for its sports leisure wear.

Additional reporting Reuters and Bloomberg