Frasers Group issues profit warning and drops FY20 guidance amid Covid-19
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Mike Ashley’s Frasers Group has issued a profit warning after revealing its board expects Covid-19 to cause a “significant disruption” to its business.
The retailer said the impact, including customer footfall, will likely mean the group “will not achieve” its previous guidance of 5-15% EBITDA growth for the year ending 26 April 2020.
It also revealed it will no longer give official guidance on its 2020 financial year.
Frasers added that prior to the coronavirus outbreak its performance had been “in-line with expectations”.
It said: “Frasers Group’s year-to-date performance had been in-line with expectations prior to COVID-19. The company has a strong management team which can adapt and respond quickly to challenges and changing market conditions. Over the longer term, the board remains confident in focussing on the Company’s elevation strategy.”
The news comes after ‘Big Four’ accountancy firm EY revealed 87% of all profit warnings issued by UK listed companies in the last three weeks cited coronavirus (Covid-19) as a contributing factor.
