Michael Murray, chief executive officer of Frasers, said the group’s long-term strategy continued to deliver results despite a difficult trading environment.
Frasers Group FY26 revenue rose 8.7 per cent to £5.33 billion (~$7.2 billion), led by a 59.2 per cent surge in international retail.
Retail profit from trading climbed 22.1 per cent on stronger product access and mix, though adjusted profit before tax fell 4.0 per cent.
Expansion remains a priority after Holdsport and XXL buys and partner stores; FY27 guidance will be reviewed at half-year.
“The Elevation Strategy is going from strength-to-strength, with positive momentum from brand partners and strong feedback from consumers validating our strategy and giving us the confidence to continue to execute with ambition and conviction. However, we continued to feel the impact of tough trading conditions, subdued consumer confidence and industry-wide excess inventory levels through Half 2 and into the start of FY27.”
However, adjusted profit before tax (APBT) declined 4.0 per cent to £538.0 million, reflecting higher impairment charges, increased net bank interest costs and investment-related impacts. Reported profit before tax rose 38.9 per cent to £527.8 million, largely due to the absence of fair value losses on equity derivatives recorded in the previous year, the Frasers Group said in a press release.
“These pressures are weighing on the entire sector, creating a prolonged and challenging environment, meaning the full potential of this progress has not yet been realised. Despite these external factors, the Group remains focused, resilient and will continue to invest in opportunities that support sustainable profitable growth,” added Murray.
International expansion gathers pace
The group continued to expand its international footprint during FY26 through acquisitions and strategic partnerships. The company completed the acquisitions of Holdsport in South Africa and XXL in the Nordic region, while opening its first partner stores in Malta, Australia and the Middle East. The disposal of Sports Direct Malaysia was completed after the year-end, accompanied by a long-term royalty agreement with Map Active.
Strategic investments and operational progress
During the year, Frasers increased its investment in Hugo Boss and Accent Group, with associate accounting for these holdings contributing £49.7 million to adjusted profit before tax. After the reporting period, the group launched takeover offers for both companies as part of its long-term international growth strategy.
Frasers Group said its strategic ambitions remain unchanged, with international expansion continuing to be a key priority. The board said it is not providing FY27 financial guidance at this stage and will review its position at the half-year results.
Fibre2Fashion News Desk
