Frasers Group sales and profits boosted by acquisitions
Frasers Group has posted a strong uplift in half year sales and profit after trade was boosted by range of acquisitions and buoyant sales at Flannels.
In the six months to 23 October, the owner of retail brands such as Sports Direct, House of Fraser and Flannels saw its revenue climb by 12.7% to £2.64 billion.
Meanwhile pre-tax profit rose by 53% to £284.6 million as adjusted pre-tax profit increased to £267.1 million from a prior £192.4 million.
The group’s UK sports retail revenue grew by 11.6%, largely due to the acquisition of Studio Retail. In addition, sales in Frasers’ premium lifestyle business rose by 24.7% as a result of new Flannels stores and continued growth online.
Looking at its international business, Frasers said retail revenue climbed by 5.8%, mainly due to the acquisition of Sportmaster in May and an increase in its Malaysian business. This was offset by the reduction in revenue following the disposal of its US retail businesses in the six-month period.
Frasers Group chairman David Daly said: “We have delivered a strong performance during the period, despite the challenging backdrop of heightened economic uncertainty in the UK, soaring energy costs, rapidly rising inflation, a widespread cost of living crisis and continued geopolitical instability. Whilst post pandemic issues with the global supply chain remain, there are signs that these are beginning to ease.”
The group has been an an acquisition trail in recent months. In addition to Sportmaster and Studio Retail, this has included the purchase of Missguided, I Saw it First and Mysale. Since the end of the half year, the company has also acquired Gieves & Hawkes and Amara and it now holds hold interests of up to around 34% in Hugo Boss.
Daly added: “Our relationships with our brand partners are stronger than ever and consequently, we can now offer our consumers an even wider choice of brands and even better choices of product. We have a clear vision to build the planet’s most admired and compelling brand ecosystem. Over the past six months, our brand relationships have continued to go from strength to strength, and today we partner with 19 of the 20 hottest brands in the World as ranked by the Lyst index.”
Looking ahead, Frasers Group has reiterated its full year guidance for adjusted pre-tax profit of between £450 million and £500 million.
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