Frasers Group profit doubles as high street empire grows
The Sports Direct and House of Fraser owner reported a pre-tax profit of £661m in the latest financial year.
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Sports Direct owner Frasers Group has reported a “record” financial performance with profits doubling after the high street empire took more brands under its wing.
The group, which also owns House of Fraser, Jack Wills, and Missguided, reported a pre-tax profit of £661 million in the year to the end of April, nearly double the £336 million made last year.
It steamed ahead with a buying spree in the last year, with new acquisitions including Savile Row tailor Gieves & Hawkes, and 15 brands from competitor JD Sports such as Choice and Missy Empire.
It also snapped up stakes in retail giants Curry’s and Boohoo.
As a result of the acquisitions, annual group revenue jumped more than 15% to £5.6 billion.
Excluding the takeovers and the impact of an extra week in the financial year, sales rose by just 1.3%.
Sports Direct saw a strong performance during the year, helped by brand partnerships including sportswear giant Nike, the company said.
Ten House of Fraser stores were shut in the period, which dragged on revenues in the premium lifestyle division.
But the loss of the shops was offset by new openings for fashion chain Flannels and a growth in online sales.
Frasers said it expects profits to keep growing in the year ahead as “momentum” continues.
Michael Murray took over as chief executive of the group last year, stepping into the shoes of his billionaire father-in-law, former owner of Newcastle United FC Mike Ashley.
With this fantastic team in place, the business has more energy and drive than ever before and is clearly benefiting from the clarity and strategic direction that Michael brings to the role
Non-executive chairman David Daly said the company is “clearly benefiting” from Mr Murray’s leadership.
“With this fantastic team in place, the business has more energy and drive than ever before and is clearly benefiting from the clarity and strategic direction that Michael brings to the role,” he said.
Mr Ashley has remained the majority shareholder of Frasers after stepping down from the board last year.
Mr Murray said: “In my first full year as chief executive, we have delivered a strong performance across the group.
“We were bold in setting our full-year guidance 12 months ago, before the full impact of the cost-of-living crisis was clear, but our business has remained resilient, and we have met these expectations.”
Shares in Frasers moved 2% higher on Thursday morning.