Frasers Group has reported a 19.9% decrease in pre-tax profits to £143.5m in its preliminary results for the year ended 26 April 2020.
Despite the drop, the group saw revenues increase by 6.9% during the year.
EBITDA also increased by 98.7% to £551m compared with £277.3m in the prior period, which Frasers Group said was largely due to the change in reporting as a result of implementing IFRS 16.
Frasers group said FY20 will likely be remembered as the “most challenging year” in the history of the company.
A statement by the group read: “As of the end of February we were on track to hit our underlying EBITDA growth target of between 5-15% (pre IFRS 16 adjustments) for the period ending 26 April 2020.
“The Covid-19 situation had a significant impact on our business performance across the group in March and April (and continued to do so in the post year end period) due to the shutdown of retail stores.”
It continued: “Thankfully, as at the date of release of these financial statements, there is a semblance of normality returning with virtually all retail stores now fully open across the group, albeit subject to strict social distancing measures.
“However the future, at least in the near term, is unclear as we and indeed the world come to terms with living under the threat of Covid-19 and what its short, medium and long term effects may be. There is currently a risk of a second wave which could lead to reinstatement of lockdown restrictions and there will be economic consequences which we do not yet fully understand.”