Frasers Group said it has benefited from international growth and is confident in long-term opportunities as it reported a solid first half.
Revenue rose 5% to £2.58 billion, driven by a significant 42.8% increase in international revenue, though adjusted profit before tax (APBT) fell 2.8% to £290.9m because of increased impairments and interest costs.
The company’s Elevation Strategy has produced an improvement in gross margin to 47.3%, while retail profit from trading increased by 12.2% to £411.4m.
Despite challenging market conditions, Frasers Group said it is reiterating its full-year APBT guidance of £550m to £600m and continues to invest in international expansion, brand partnerships, and strategic property acquisitions.
The company confirmed that it paid £217.6 million to acquire the Braehead shopping mall west of Glasgow. Earlier this week it opened a Flannels store in Dundee’s Overgate Centre which it also owns.
Net assets increased to £2,394.2m, and the Group secured a new £3.1bn credit facility.
Michael Murray, chief executive, said: “We’ve made a solid start to FY26 even though market conditions are tough, consumer confidence is very subdued and excess inventory continues to weigh on the industry, leading to increased promotional activity.
“While we remain cautious into the second half, our focus is unwavering as we confront these challenges head-on, and we are today re-iterating our FY26 APBT guidance of £550m to £600m.
“We are continuing to invest boldly in our Elevation Strategy-deepening brand partnerships, elevating our product mix, opening new Sports Direct stores internationally, and acquiring strategic properties to strengthen our portfolio.
“These steps reinforce our ambition and give us real confidence in the substantial long-term opportunities ahead for the group.”
#Frasers #sees #significant #international #growth #Daily #Business