Frasers Group has reported a “record-breaking” year with pre-tax profits surging to £344.8m in FY22, up from a loss of £39.9m in FY21, despite “significant” economic headwinds and challenges across the sector.
Group revenues also increased 30.9% year-on-year from £3.62bn to £4.74bn, as the company recovers from Covid-19. However, Frasers said it cannot overlook the economic headwinds, including challenges with supply chain and the increased cost of living, as they could have an impact on business potential.
Overall, its Premium Lifestyle brand led the way with revenues increasing by 43.6% to £1.05bn, largely due to new Flannels stores, continued growth in online, and the reopening of stores after the last lockdown in March 2021.
UK Sports Retail revenues also grew by 31.2% to £2.58bn, and European Retail revenues rose by 28.4% to £790.2m amid growth in Ireland and the lockdowns experienced in the prior year.
Meanwhile, Wholesale and Licensing saw a 9.7% increase in revenues to £168.1m, although revenues for Rest of World Retail dropped 1.6% to £150.3m.
In FY22, the company made strategic acquisitions, including Missguided and SRL, which the Frasers said enabled the group to unlock new e-commerce capabilities and access a wider customer base.
Frasers returned £193.2m to shareholders through a share buy back programme, and the group has forecasted pre-tax profits of between £450m and £500m for the next financial year
The group said that it has ambitions to grow the business outside of the UK and will be exploring the potential for further international expansion through acquisitions, joint ventures and organic openings.
Frasers has already begun to expand its operational capabilities in Europe, with a new development site in Bitburg, Germany set to open in the coming years.
Michael Murray, chief executive of Frasers Group, said: “I am really proud of the record performance we’ve announced today.
“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.”
