Frasers Group hails ‘break-out’ year as it reports increased profit
Frasers Group, the parent company of Sports Direct and House of Fraser, has posted annual profit at the top end of guidance despite a small drop in revenue.
In the year to 28 April, revenue edged down 0.9% to £5.537 billion as retail revenue declined by 1.3%.
Frasers Group said a strong trading performance from Sports Direct was offset by expected declines in Game UK and Studio Retail, planned House of Fraser store closures, and a softer luxury market.
Meanwhile. adjusted pre-tax profit rose by 13.1% to £544.8 million at the top end of guidance.
Break-out year for building growth
Michael Murray, chief executive of Frasers Group, said: “This has been a break-out year for building Frasers’ future growth. As well as delivering a strong trading performance, particularly from Sports Direct, we made significant progress with our Elevation Strategy.
“We expanded our retail ecosystem, establishing valuable partnerships with new brands. Our brand relationships have never been stronger, giving us invaluable support as we continue the international expansion of our business.”
Looking ahead, the group said it remains confident that its strategy will drive a continued strong performance as it benefits from synergies from both its automation programme and the integration of acquisitions. For the current financial year, it expects adjusted pre-tax profit to be in the range of £575 million to £625 million.
Murray added: “We have built a lot of momentum this year and are entering the new financial year with many exciting growth opportunities ahead of us, which we will continue to invest in for the long-term benefit of the group.”
