Frasers driven by overseas sales as profits slip – Daily Business

Frasers’ underlying profits slipped in

Frasers Group, the Sports Direct to Flannels retailer, saw annual revenue grow by almost 9% to £5.33 billion, driven by international expansion, while underlying profits were eroded by higher costs and asset impairments.

Adjusted profit before tax came in 4% lower at £538 million, down 4% on the previous year, despite a 22.1% rise in retail profit from trading to £912.5m, largely driven by underlying growth in UK Sport.

Ongoing takeover bids for German fashion house Hugo Boss and Australian footwear chain Accent Group meant that “it is not appropriate to provide financial guidance for FY27 at this time,” the company said.

Frasers’ takeover bid for Hugo Boss was rejected by the German fashion brand earlier this month as “financially inadequate”, setting up a potential battle as the British retailer seeks to expand its luxury and premium offerings, while an independent committee of Accent’s board also recommended that the retailer reject the bid.

Michael Murray, chief executive, said the company had “confidence to continue to execute with ambition and conviction.

“However, we continued to feel the impact of tough trading conditions, subdued consumer confidence and industry-wide excess inventory levels through Half 2 and into the start of FY27.

“These pressures are weighing on the entire sector, creating a prolonged and challenging environment, meaning the full potential of this progress has not yet been realised.

“Despite these external factors, the group remains focused, resilient and will continue to invest in opportunities that support sustainable profitable growth.”

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