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8mo ago

Frasers Half-Year Sales Up as Overseas Expansion Counters UK Retail Declines

Management kept profit guidance intact despite weaker UK retail.

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Michael Murray, chief executive of Frasers Group, says consumers are buying more “necessities rather than luxury” goods

Overview

  • Group revenue reached £2.6 billion for the six months to 26 October, a 5% year-on-year increase.
  • Adjusted pre-tax profit slipped about 3% to £291 million, while statutory pre-tax profit nearly doubled to £412 million due to a revaluation of the Hugo Boss stake.
  • International sales jumped around 43% following acquisitions of Holdsport in South Africa and XXL in the Nordics.
  • UK retail weakened as sports revenue fell 5.8% to £1.3 billion on planned run-downs at Game and Studio Retail, alongside further closures at House of Fraser and Jack Wills.
  • Frasers cited very subdued consumer confidence and sector-wide discounting, reported roughly £10 million in cost savings, and maintained full-year adjusted pre-tax profit guidance of £550 million to £600 million.