Frasers Group has posted an 8% jump in its half-year pre-tax profits as its elevation strategy continues to drive strong trading performance.
The FTSE 100 listed firm saw its profits rise to £310.2m in the six months to 29 October, up from £287.2m the year before.
Sales rose 4.4% to £2.77bn during the period, which the business said was “largely due to the impact of businesses acquired in [the second half of the year] and a strong underlying performance from Sports Direct”.
It added that the sports retailer’s performance “more than mitigated a decline in Game UK and Studio Retail” after its UK sports division – which makes up more than half of the group’s revenue – edged up 0.8% for the six months.
Subscribe to Retail Gazette for free
Sign up here to get the latest news straight into your inbox each morning
Frasers Group chief executive Michael Murray 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.
“The elevation strategy continues to drive strong trading performance across the business with good growth in Sports Direct supported by our brand partners.
“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.”
Frasers continued its opening spree of new “elevated” stores including new Flannels and Sports Direct stores in Gateshead Metrocentre, as well as a Sports Direct and Frasers flagship in Norwich.
Murray added: “I am also excited about the potential of our strategic investments which we expect to unlock further opportunities for the group.
“We have a clear ambition to be the leading sports retailer in EMEA and we are making progress on broadening our footprint through a focused international M&A strategy.”
Frasers pulled out of its acquisition of SportScheck last week after the German sports chain filed for administration. The group said it would instead seek a pre-pack deal for the business.
Click here to sign up to Retail Gazette‘s free daily email newsletter
