Frasers Group benefits from strong trading at Sports Direct
Frasers Group has seen its pre-tax profits rise by 8% to £310.2 million as it continues to implement its elevation strategy.
In the six months to 29 October, retail revenue increased by 4% to £2.6809 billion following the impact of businesses acquired in the second half of the group’s previous financial year.
Revenue at the group’s UK sports retail division edged up 0.8% after sales at Sports Direct more than mitigated a decline at Game UK and Studio Retail.
Meanwhile, revenue at Fraser’s premium lifestyle division increased by 3.1% as the impact of planned House of Fraser store closures and a softer luxury market was offset by sales from the businesses acquired from JD Sports.
Revenue at Frasers Group’s international business was also up, rising by 13.2%. The group is aiming to be the leading sports retailer in EMEA and is currently focused on an international M&A strategy.
Michael Murray, chief executive of Frasers Group, said: “We have delivered a strong performance in the first half of the year, with great momentum as we head into the Christmas trading period. The elevation strategy continues to drive strong trading performance across the business with good growth in Sports Direct supported by our brand partners.
“Our long-term ambitions for our premium lifestyle business remain unchanged although it is likely that progress will remain subdued for the short to medium term in the face of a softer luxury market however, we continue to invest with confidence in our unique proposition.”
Frasers Group said the strong momentum seen in the first six months of its financial year has continued into its second half as it looks forward to strong Christmas trading.
Murray added: “As we look to 2024, we are confident that our diversified proposition will continue to provide consumers with choice across a range of brands and price points. I want to thank our talented colleagues for their relentless focus and hard work which has enabled another strong set of results.”