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Frasers Group has revealed that retail profits from trading increased by 25.7% to £364.7m in the half-year period ended 29 October, driven by the “strong” performance from Sports Direct.
During the period, Frasers also revealed that profit before tax increased by 8% to £310.2m, while profit after tax rose by 5.6% to £234.6m. The latter figure was partially offset by a reduction in foreign exchange gains and an increase in effective tax rate.
Retail revenues increased by 4%, which was largely due to the impact of businesses acquired in H2 of FY23, as well as a strong underlying performance from Sports Direct.
According to the group, its completion of the warehouse automation project has increased the efficiency of its warehouse and inventory handling process.
As a result, the business expects this to lead to a 5% to 15% gross reduction in like-for-like inventory holding in the next 12 months. The accelerated integration of acquired entities – including Studio Retail and Sportmaster – will also improve efficiency and profitability in coming years.
Michael Murray, CEO of Frasers Group, said: “We have delivered a strong performance in the first half of the year, with great momentum as we head into the Christmas trading period.
“Our long-term ambitions for our premium lifestyle business remain unchanged, although it is likely that progress will remain subdued for the short to medium term in the face of a softer luxury market; however, we continue to invest with confidence in our unique proposition.”
He added: “As we look to 2024, we are confident that our diversified proposition will continue to provide consumers with choice across a range of brands and price points. I want to thank our talented colleagues for their relentless focus and hard work which has enabled another strong set of results.”
