Mike Ashley Warns of More Closures Amid Rising Profits

  • Mike Ashley warns of more House of Fraser store closures
  • Sports Direct reports a 58% rise in underlying profits-before-tax to £101.8m
  • Group sales rose 14% to £2.04bn
  • Statutory profits up 160% to £193.4m due to improved trading result and profit on sale and leaseback of Shirebrook campus
  • Ashley criticizes current business rate system, urging government reform
  • Shares in Sports Direct spiked as much as 30% following the announcement

Mike Ashley, the founder and owner of Sports Direct, has warned that more House of Fraser store closures are expected despite a rise in profits for the company. In the latest half-year results, Sports Direct reported a 58% increase in underlying profits before tax to £101.8 million and group sales rose by 14% to £2.04 billion. Statutory profits increased by 160% to £193.4 million, attributed to improved trading results and profit on the sale and leaseback of its Shirebrook campus. Ashley criticized the current business rate system, urging the government to expedite reforms. He stated that they are not looking for blanket discounts but a correct amount in rates. Sports Direct’s shares spiked as much as 30% following the announcement.

Factuality Level: 8
Factuality Justification: The article provides accurate and objective information about Sports Direct’s financial performance and Mike Ashley’s comments on House of Fraser store closures. It also includes relevant details about the company’s sales and share price movement. However, it could be more concise in some parts and avoids personal opinions.
Noise Level: 4
Noise Justification: The article provides relevant information about House of Fraser store closures and Sports Direct’s financial performance. It also includes Mike Ashley’s comments on business rates reform. However, it could benefit from more in-depth analysis or context on the broader retail industry trends and potential solutions for struggling stores.
Financial Relevance: Yes
Financial Markets Impacted: Sports Direct and House of Fraser stores
Financial Rating Justification: The article discusses financial results, store closures, and potential impacts on the companies’ operations and stock prices.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification:

Reported publicly: www.retailsector.co.uk