UK retailer Frasers Group, citing its strengthened brand partnerships and the ongoing execution of its “Elevation Strategy,” is eying £575–£625 million (€684.4m–€743.9m) in annual adjusted profit before tax (APBT) for the current fiscal year ending in April 2025.
In FY24, the company, which is continuing to invest in group-wide operational efficiencies that include warehouse automation and digital infrastructure, reported a 13 percent increase in APBT to £544.8 million (€648.4m) for the 52 weeks ended April 28. FY gross margin rose by 40 basis points to 43.3 percent and was bolstered by a 250-basis point increase in its UK Sports segment. Frasers’ FY operating profit dipped 2.7 percent to £520.6 million (€619.6m), impacted by a £31.3 million loss within its property division. All other segments posted year-over-year operating profit improvement, with international turning a £44.1 million (€52.5m) profit against a year-ago loss of £11.3 million.
Annual group revenues declined 0.9 percent to £5,537.7 million (€6.6b) from £5,586.0 million. International sales gained 3.3 percent year-over-year to £1,289.3 million (€1.5b) due to growth from Sports Direct and the acquisition of MySale in Australia. The group continues to explore additional international growth opportunities, most notably an investment in an Indonesian joint venture and its pending purchase of Netherlands-based retailer Twinsport.
Elsewhere, Frasers’ UK Sports segment, which accounted for nearly 52 percent of total group revenue, suffered a 3.3 percent drop in annual sales to £2,860.8 million due to planned declines in Game UK and Studio Retail. However, the unit’s annual gross margin improved by 250 basis points to 45.5 percent on an improved product mix at Sports Direct, including the addition of The North Face, On and Columbia Sportswear. The unit’s annual operating profit increased 7.6 percent to £353.1 million (€420.3m).
Premium Lifestyle segment FY operating profit rose by 8.4 percent to £98.6 million (€117.4m) despite a 1.2 percent drop in annual revenue to £1,204.0 million (€1.43b) on a softer luxury market and planned House of Fraser store closures.
Going forward, the group sees its fledgling Frasers Plus financial services business as a potential strong revenue stream with a long-term objective of generating more than £1.0 billion in annual revenues.
