Frasers Group has achieved a notable increase in profit despite a decline in overall revenue, marking a significant year for the company.
- Despite a 0.9% year-on-year dip in group revenue to £5.53bn, the Frasers Group reported a 13.1% rise in adjusted profit before tax to £544.8m.
- The company’s retail revenue faced a decrease, yet property revenue soared by over 100%, highlighting diverse business operations.
- The UK Sports Retail arm saw a revenue fall, though international ventures experienced growth, driven by acquisitions and strategic expansion.
- CEO Michael Murray praised the strong brand partnerships and operational investments that have set the foundation for future growth.
Despite experiencing a 0.9% decrease in year-on-year group revenue, Frasers Group has reported a remarkable 13.1% rise in adjusted profit before tax, reaching £544.8m. This demonstrates their resilience in a challenging market.
The group’s total revenue was impacted by a 1.3% fall in retail revenue; however, the property revenue remarkably increased by over 100%, contrasting with an 11.2% decline in their financial services revenue. The strategic diversification into property has proven beneficial for their financial outcomes.
The core sports retail segment, including Sports Direct, contributed to 51.7% of the group’s total sales, yet faced a 3.3% revenue decrease. This was affected by planned sales reductions in Game UK and Studio Retail, House of Fraser store closures, and a softer luxury market. Despite these challenges, the international retail arm recorded a 3.3% rise in sales due to growth in the Sports Direct International business and the strategic acquisition of MySale in Australia.
The leadership under CEO Michael Murray has focused on strengthening brand partnerships and expanding the group’s retail ecosystem. New associations with brands such as The North Face, On, and Columbia have bolstered their market position and supported international growth efforts. Murray stated, “This has been a breakout year for building Frasers’ future growth,” highlighting their preparation for continued expansion.
Looking forward, Frasers Group is optimistic about the future, projecting adjusted profit before tax to range from £575m to £625m by the end of April 2025. Investments in warehouse automation and digital infrastructure are underway, expected to yield significant benefits, as evidenced by their endeavours with Frasers Plus and partnerships like that with THG.
Frasers Group’s strategic initiatives and robust market presence have laid a solid groundwork for continued success in the coming years.
