Frasers Group FY profits surge, ups FY23 outlook despite headwinds

Image: Frasers Group Frasers Group has increased its guidance for the fiscal year 2023 after reporting record profit in its most recent annual results. The group, whose portfolio includes Flannels, Sports Direct, House of Fraser, and Jack Wills, made a pre-tax profit of 344.8 million pounds in the year to April 24, compared to a loss of 39.9 million pounds a year earlier. It came despite a “significant increase in general running costs” amid rising inflation and widespread supply chain challenges, which it warned could persist. Still, the group upped its FY23 outlook, and now expects adjusted pre-tax profit of between 450 million pounds and 500 million pounds. Group revenue surges Excluding acquisitions, group revenue for the most recent year was up 30.1 percent to 4.75 billion pounds as the company benefited from shoppers flocking back to stores following the end of Covid restrictions. Revenue at the group’s premium lifestyle division jumped 43.6 percent to 1.06 billion pounds, while revenue at its UK sport retail division was up 31.2 percent to 2.58 billion pounds. Breaking it down by geography, revenue in European retail was up 28.4 percent to 790.2 million pounds, while retail revenue in the rest of world was down 1.6 percent to 150.3 million pounds. Chief executive Michael Murray hailed a “record-breaking year” despite “significant economic headwinds and well-chronicled challenges across the sector”. He said: “It's clear that our elevation strategy is working and we are building incredible momentum with new store openings, digital capabilities and deeper brand partnerships across all of our divisions. “We've got the right strategy, team and determination to keep driving our business from strength to strength.”
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