Sports Direct, the retailer founded by Newcastle United owner Mike Ashley, is continuing to shrug off the economic downturn with soaring sales and profits in the first few months of the year.

Shares in the UK biggest sports retailer reached a new high of 454.5p as the company said it was on track to hit its full year targets. Profits rose 23% to £128.6m and sales lifted 14% to £317.4m in the nine weeks to March 31. The rise in the value of the shares comes just two months after Ashley sold an £100m stake in the company, which is set to pay a share bonus equal to 75% of their salary to 2,000 of its shop workers this summer. They received a payout worth 25% last year.

The figures do not include the performance of Republic, the fashion chain bought out of administration by Sports Direct earlier this year. The sports retailer has refused to to honour gift vouchers bought by about 78,000 Republic shoppers prior to its collapse. The company said: "It is not our responsibility to honour the vouchers.

Republic will form part of Sports Direct's new fashion division, which put on the strongest growth during the period. USC, Cruise and Flannels, which Sports Direct bought last year, saw sales rise 76.5% to £18m and gross profit increased 42% to £7.1m. The company's main sports clothing chain also saw a decent uplift in sales, up 13.6% to £264.3m in the period.

"The strength of this performance during the nine week period continues to demonstrate the resilience of our business model, especially in the UK," Dave Forsey, chief executive.

He said about 15% of total sports fashion sales now came online.