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Britain’s Frasers defies retail downturn with profit rise


LONDON, Dec 8 (Reuters) – British sportswear and clothing retailer Frasers (FRAS.L) kept financial guidance for its full 2022-23 year after reporting a 38.8% rise in first-half profit, defying a downturn across the wider retail sector.

FTSE-100 listed Frasers, formerly called Sports Direct, said on Thursday it still expected full-year adjusted profit before tax of 450-500 million pounds ($549-$610 million), up from the 344.8 million made in 2021-22.

“Whilst the macroeconomic environment is clearly challenging and the backdrop for the coming year is hard to predict with any certainty, we have strong strategic and trading momentum behind us,” the group said.

Frasers made adjusted profit before tax of 267.1 million pounds in its first half to Oct. 23, on revenue up 12.7% to 2.64 billion pounds, largely due to acquisitions.

While most retail stocks have seen sharp declines this year as the cost-of-living crisis has worsened, shares in Frasers are up 16%.

Founder Mike Ashley still controls Frasers, owning 69% of its equity, but the business is run by Michael Murray, Ashley’s son in law, who became chief executive in May.

Murray is pursuing Frasers’ so-called “elevation strategy”, with investments in flagship stores and in online, the deepening of partnerships with brands such as Nike (NKE.N) and BOSS (BOSSn.DE) and acquisitions including fashion brand Missguided.

Reporting by James Davey, Editing by Paul Sandle

Our Standards: The Thomson Reuters Trust Principles.


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