Frasers Group maintains guide amid 'very subdued' consumer confidence
Sports Direct owner Frasers Group PLC on Thursday said it had a ‘solid’ first half of its financial year, in the face of tricky market conditions.
The company, which also owns Flannels and House of Fraser, said consumer confidence ‘is very subdued’ and the retail industry is mired by ‘excess inventory’.
In the half-year ended October 26, pretax profit climbed 97% to £412.1 million from £209.0 million a year prior.
Total revenue rose 5.0% to £2.58 billion from £2.46 billion. Retail revenue alone was 5.1% higher at £2.51 billion from £2.39 billion.
Adjusted pretax profit, however, declined 2.8% to £290.9 million from £299.2 million.
Reported profit was supported by a £120.5 million fair value gain, largely stemming from its Hugo Boss AG holding. This compares to a £64.0 million fair value loss a year prior.
‘We’ve made a solid start to FY26 even though market conditions are tough, consumer confidence is very subdued and excess inventory continues to weigh on the industry, leading to increased promotional activity,’ Chief Executive Michael Murray said.
‘While we remain cautious into the second half, our focus is unwavering as we confront these challenges head-on.’
It backed guidance for adjusted pretax profit of £550 million to £600 million for the full-year. At best, it would represent 7.1% growth from £560.2 million.
Frasers shares were down 2.0% to 709.00 pence each in London on Thursday morning.
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