Sports Direct results shed light on Heatons profits

Sports Direct, the listed sporting goods retailer that owns 50 per cent of Irish department store Heatons, said its share of Heatons operating profits for the six months to the end of October was worth £1.5 million (€1.9 million).

As Sports Direct, founded by billionaire football club owner Mike Ashley, owns a half share of Heatons, this implies that the Irish company's total operating profits for the six month period were close to €4 million

Heatons is unlimited so it does not reveal its financial performance. Its chief executive John O’Neill did not respond to an email request for comment on Thursday.

Heatons, which has 54 department stores in Ireland, 26 of which house sports outlets run by Mr Ashley's group, is currently embroiled in a legal battle with Sports Direct over a commercial contract. That case is listed for mention in the High Court this month.

Sports Direct said on Thursday it was confident of at least reaching its full-year profit target, as it posted an 11 per cent rise in first half earnings .

The group, which has over 434 UK sports stores and 270 elsewhere in Europe, as well as a raft of brands and fashion chains, said underlying core earnings before its share scheme costs rose to £203.1 million (€255.8 million) in the 26 weeks to October 26.

Total sales rose 6.5 per cent in the half to £1.43 billion, led by a solid increase in sports retail sales, where online demand is rising.

Broader product ranges helped group gross margin increase 90 basis points to 44 per cent.