Frasers Group has achieved a significant rise in adjusted profit despite a slight revenue decline, marking a pivotal year for the company.
- Revenues dipped slightly by 0.9% to £5.53bn, amidst challenges in retail and financial services.
- The UK Sports Retail segment saw a revenue decline due to strategic sales adjustments and market conditions.
- International retail performance offset domestic declines, showing positive growth and strategic acquisitions.
- Operational efficiencies and brand partnerships have been instrumental in supporting Frasers Group’s future growth.
Frasers Group reported a 13.1% increase in adjusted profit before tax, amounting to £544.8 million for the year ending 28 April 2024, despite encountering a 0.9% dip in overall revenue to £5.53 billion. This performance indicates strong management of existing resources and strategic shifts despite external market challenges.
Revenue from the UK Sports Retail division, which includes Sports Direct, fell by 3.3%. This segment constitutes 51.7% of the group’s total sales. The decline was attributed to planned sales reductions, notably in Game UK and Studio Retail, as well as the impact of closing House of Fraser stores and a weaker luxury market within its premium lifestyle brands.
International operations, representing 23.3% of group revenue, experienced a 3.3% increase, buoyed by growth in the Sports Direct International sector and the acquisition of MySale in Australia. These moves underline Frasers Group’s commitment to expanding its international footprint to offset domestic market fluctuations.
The premium lifestyle division, including brands like House of Fraser and Flannels, saw a 1.2% reduction in sales, comprising 21.7% of the total group revenue. Challenges in the luxury sector partially contributed to this downturn, yet progress in the group’s elevation strategy and brand alignments offers a buffer against these market pressures.
Chief Executive Michael Murray highlighted the year’s strategic achievements, emphasizing the strengthening of brand relationships and operational efficiencies. Investments in automation and digital infrastructure are projected to enhance operational outcomes as early as FY25. This forward-thinking approach is supported by anticipated profit growth, with forecasts projecting adjusted profit before tax between £575 million and £625 million for the upcoming fiscal year.
The strategic focus and operational enhancements have positioned Frasers Group for sustained growth despite existing market challenges.
