Frasers has reported strong revenue and profit growth across its portfolio in a “particularly significant year for sports retail” driven by the group’s elevation strategy.
In a trading update for the 53 weeks ending April, 2023, Frasers which owns retailers including Sports Direct, Flannels and House of Fraser posted a 96.9% jump in reported profit before tax to £660.7m.
Group revenue increased by 15.8% to £5.5bn, attributed to the “strong trading performance from the core Sports Direct business driven by the continuing success of the elevation strategy”.
UK sports retail sales increased 16.7% to £3bn, premium lifestyle grew 14.8% to £1.2bn, international retail jumped 15.2% to £1.0bn and wholesale climbed 12% to £188.3m.
Adjusted profit before tax increased 40.7% to £478.1m, with the group expecting the strong profit momentum to carry on into the next financial year.
Frasers Group said it expects adjusted profit before tax to be in the range of £500m to £550m in 2024 as Sports Direct “continues to benefit from the strengthening relationships with key brand partners” and the group benefits from ”acquisition integration synergies and cost mitigation exercises”.
Chief executive Michael Murray said: “In my first full year as chief executive, we have delivered a strong performance across the group. We were bold in setting our full-year guidance 12 months ago, before the full impact of the cost-of-living crisis was clear, but our business has remained resilient and we have met these expectations.
“The elevation strategy is continuing to drive results across every segment and I want to thank the entire company for all their hard work in delivering our vision for Frasers Group. It has been a particularly significant year for sports retail, demonstrating that elevating Sports Direct was the right strategy.
“Our investment in the store estate, our focus on strengthening key brand partnerships and the synergies created by strategic acquisitions is now delivering very clear results. We’ve also made huge progress in the year building our sector-leading ecosystem, with Frasers Plus now successfully launched across our brands and businesses.
“We enter the new financial year in a strong position and are determined to unlock further growth, underpinned by our laser focus and acceleration of our elevation strategy.”
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