// Frasers Group said it had a record-breaking year as profits surged from £8.5 million to £366.1 million
// The group expects profits to grow to between £450 million to £500 million in its current year
Frasers Group, owner of House of Fraser and Sports Direct, posted a “record-breaking year” as it recovered from Covid with pre-tax profits rocketing from £8.5 million to £366.1 million despite the “significant economic headwinds”.
The surge in profits was largely due to the reopening of stores as it was pitched against a Covid-hit period last year.
However, it said new Flannels stores, the continued growth of its premium lifestyle division and continued operating efficiencies also helped to drive profit growth.
The retail group believes the strong performance will continue and pre-tax profit will surge to between £450 million and £500 million next year.
Over the full year to 24 April, group sales, excluding recent acquisition Studio Retail Group, rose 30.9%.
UK sports retail sales jumped 31.2% while its premium lifestyle division surged 43.6%.
Frasers Group’s European business grew 28.4%, largely due to strong growth in Ireland, alongside the weak comparatives.
Frasers Group chief excecutive Michael Murray, who took over from founder Mike Ashley in May, 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.”
The retailer’s elevation strategy, it’s ongoing plan to modernise the business to appeal to a more discerning consumer, was brought to life with its new store openings this year, including its new flagship Sports Direct in Birmingham and the seven floor Flannels in Liverpool, which includes a Barry’s Bootcamp.
The retailer said it will “continue to invest in new store openings, refurbishments and flagship opportunities to bring the world’s best brands and experiences to untapped markets.”
Frasers Group has also been acquisitive over the past year, snapping up Missguided and Studio, which it said would enable the group to “unlock new ecommerce capabilities and access a wider customer base”.
Murray said: “We are accelerating our strategy to provide consumers with access to the world’s best sports, premium and luxury brands by providing a world-leading retail ecosystem. Aligned with this vision, we have defined the group’s purpose: To elevate the lives of the many by giving them access to the world’s best brands and experiences.”
Murray said he was working with key brand partners such as Nike, Boss and Stone Island to align plans as it delivered on its elevation strategy.
“Our brand partnerships are deeper and stronger than they have ever been in the group’s history. These relationships will allow us to continue improving our product offering and customer experience by creating the best platforms to enable our brands to succeed.”