- Frasers Group
- 17 July 2025 08:18:53
Source: Sharecast
The Sports Direct, Jack Wills and Sofa.com owner said adjusted profit before tax (PBT) was 2.8% higher than last year at £560.2m over the 12 months to 27 April, as a 1.5% decline in the first half was met with an 8.3% improvement in the second.
However, this was still towards the lower end of the £550m-600m guidance range given at its half-year results in December.
The company also gave the same guidance range for the current fiscal year, held back by £50m of incremental costs as a result of changes in last year's Autumn Budget.
Shares were down 4.3% at 617.28p in early deals in London.
Group revenues were down 7.4% over the year to £4.93bn, with a 7.2% drop in its UK sports retail division to £2.70bn and a 14.8% plunge in premium lifestyle to £1.05bn offsetting a 1.3% improvement in international operations to £1.01bn.
Reported PBT dropped 24.3% to £379.4m, held back by FX losses (compared with gains the previous year) and the fair value movements on equity derivatives, primarily relating to a "material decline" in the share price of Hugo Boss, in which the company owns a 19.2% stake.
Looking ahead, the retailer said that recent sales trends "have been more encouraging" following a weak period last year, with both UK consumer confidence and trading conditions improving.
"For FY26, we are mindful of the various macro headwinds and still expect to incur at least £50m of incremental costs as a result of last year's Budget, but we are working hard to mitigate those by taking more costs out, focussing on potential efficiencies through the use of AI, realising further acquisition synergies, and sustaining a robust gross margin," the company said.