Frasers Group, the retail conglomerate, has reported its half-year results for the period ending October, showing both sales and profit increases. While there were some declines, the company has emerged as one of the winners in the UK retail industry and internationally, demonstrating its resilience in the challenging environment.
Total revenue rose by 4.4% to £2.769 billion, driven by acquisitions and the strong performance of its sports and athleisure retail business, Sports Direct. Even when excluding acquisitions and disposals, revenue still increased by a robust 0.8%, which sets Frasers Group apart from other retailers experiencing sales declines.
Retail gross profit increased to £1.12 billion, and group gross profit reached £1.19 billion. The group’s gross margin also improved to 43%. The trading profit from the retail segment surged by 25.7% to £364.7 million, fueled by the success of Sports Direct’s elevation strategy and brand partnerships. However, the group’s trading profit decreased by 6% to £412.5 million. Operating profit grew by 4.4% to £298.1 million, and adjusted profit before tax rose by 12.6% to £303.8 million.
Despite lower profits from property and subsidiary sales, reported profit before tax increased by 8% to £310.2 million, and reported profit after tax grew by 5.6% to £234.6 million. Strong trading results were partially offset by a reduction in foreign exchange gains and higher tax rates.
In terms of business segments, UK Sports Retail revenue increased by 0.8%, while Premium Lifestyle revenue rose by 3.1%. International Retail revenue experienced the strongest growth, reaching 13.2%. Frasers Group CEO, Michael Murray, expressed satisfaction with the company’s performance heading into the Christmas trading period.
Murray highlighted the success of the elevation strategy and the support of brand partners, particularly emphasizing the growth of Sports Direct. Despite challenges in the luxury market, the company remains confident in its unique proposition and long-term ambitions for the Premium Lifestyle business.
Looking ahead, Frasers Group is confident of achieving an adjusted profit before tax within the range of £500 million to £550 million for the full year. The company’s diverse portfolio and strong sports and athleisure retail business have been key to its success, and it continues to invest in its unique proposition.
For more information on Frasers Group’s half-year results, please visit source 1 and source 2.
