The British retail group Frasers Group Plc achieved a solid increase in sales in the first half of the 2025/26 financial year. The parent company of chains such as Sports Direct, Flannels and House of Fraser said on Thursday that the growth despite difficult conditions was due to progress in the implementation of the “Elevation Strategy” reform program and international expansion.
In the 26 weeks before October 26th, group sales amounted to 2.58 million British pounds (2.95 billion euros). This corresponded to an increase of 5.0 percent compared to the same period last year. The growth driver was the international business, whose revenues grew by 42.8 percent, not least thanks to the takeover of Holdsport and XXL.
Profit before tax (APBT) adjusted for special items fell by 2.8 percent to 290.9 million pounds, which, according to the group, was mainly due to value adjustments. According to a statement, profitability in the core retail business improved. The group’s gross margin increased by 160 basis points to 47.3 percent.
The net profit attributable to shareholders jumped from 155.3 to 330.9 million British pounds (378.3 million euros), which resulted primarily from the revaluation of financial instruments in connection with company investments.
Management confirms the earnings forecast for the full year
CEO Michael Murray was satisfied with the current results: “We have made a solid start to the 2025/26 financial year, although market conditions are tough, consumer confidence is very subdued and excess inventory continues to weigh on the industry, leading to increased discount campaigns,” he explained in a statement. “We are entering the second half of the year cautiously, but we will maintain our focus undeterred and tackle the challenges head on.”
Murray highlighted the deepening of partnerships with well-known brands, which was confirmed, among other things, by his appointment to the supervisory board of Hugo Boss, and referred to the successful growth of the luxury Flannels division. This returned to sales growth and increased its gross margin by 410 basis points.
The group stuck to its earnings forecast for the full year. A pre-tax profit adjusted for special effects in the range of 550 to 600 million British pounds is still expected. The company also emphasized that it would continue its strategy based on portfolio optimization and investments.
This article was created using digital tools translated.
FashionUnited uses artificial intelligence to speed up the translation of articles and improve the end result. They help us to make FashionUnited’s international reporting quickly and comprehensively accessible to a German-speaking readership. Articles translated using AI-based tools are proofread and carefully edited by our editors before they are published. If you have any questions or comments, please email [email protected]