// Frasers Group has issued a profit warning after saying its guidance of a 20% to 30% rise in profits could not be met this year
// Tier 4 restrictions – which affect London and southeast of England – will impact the business
// Staff in stores are still expected to go in to fulfil click-and-collect orders
Mike Ashley’s Frasers Group has issued a profit warning after scrapping its guidance of a 20 per cent to 30 per cent rise in profits this year.
The retailer, which includes high street names including Sports Direct, House of Fraser, Evans Cycles and Game Digital, had only made the commitment earlier this month.
However, the restrictions – which affect London and southeast of England – will impact the business, with many stores forced to close to customers.
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Despite this, staff in stores are still expected to go in to fulfil click-and-collect orders.
“Given this is a peak trading period, and combined with the high likelihood of further rolling lockdowns nationwide over the following months at least, such is the uncertainty of when stores can and cannot open that the board of Frasers Group plc can no longer commit to Frasers Group achieving its publicised guidance,” Frasers Group said.
Earlier this month, the company revealed that pre-tax profits rose by 17.6 per cent to £106.1 million at Frasers Group, in the half-year to the end of October.
The retailer said it had benefited from the business rates holiday, although revenues fell 7.6 per cent to £1.89 billion due to the six weeks of store closures in the first lockdown.
On Thursday, Frasers Group announced that it would not buy a stake in handbag maker and luxury fashion retailer Mulberry, after building up a 36.8 per cent stake in the business.