Frasers Group reported profits improved significantly in the fiscal year ended April 24 as sales grew 30.9 percent.

Revenue grew to £4,746.9 million from £3,625.3 million a year ago. UK Sports Retail, led by Sports Direct, saw sales climb 31.2 percent to £2,581.7 million. The gains were mainly due to stores reopening after the last lockdown in March 2021 and the comparative period impacted by lockdowns due to COVID-19. Excluding acquisitions, revenue increased by 30.1 percent.

Premium Lifestyle revenue increased by 43.6 percent to £1,056.6 million due to new Flannels stores, online growth and stores reopening after the March 2021 COVID-related lockdown. Excluding acquisitions, revenue increased by 43.3 percent.

European Retail revenue increased by 28.4 percent to £790.2 million, stemming from Ireland’s growth and the previous year’s pandemic lockdowns. Excluding acquisitions and on a currency-neutral basis, revenue increased by 33.4 percent.

Rest of World Retail sales were £150.3 million, down 1.6 percent (this includes sports stores in Malaysia trading under the Sports Direct banner, retail stores in the U.S. trading under Bob’s Stores and Eastern Mountain Sports and its online businesses). In Malaysia, the stores are 51.0 percent owned by Frasers Group.

The decline in Rest of World Retail was primarily due to the U.S. businesses offset by an increase in Malaysia. On May 26, Frasers Group announced that it sold its U.S. retail businesses for $70 million in cash to GoDigital Media Group.

Wholesale and licensing sales grew 9.7 percent to £168.1 million. The segment includes several sports brands, including Everlast, Karrimor, and Slazenger.

Profit Before Tax for the year was £366.1 million, up from £8.5 million. The strong reopening of stores drove the gains after lockdown, new Flannels stores, continued growth online in the premium lifestyle space, continued operating efficiencies and the FY21 comparative, including COVID-related lockdowns, mitigated, to some extent, by property-related impairments of £227.0 million.

Adjusted PBT was £344.8 million compared to a loss of £39.9 million in FY21. Excluding acquisitions and on a currency-neutral basis, Adjusted PBT increased by £394.0 million.

Michael Murray, chief executive of Frasers Group, commented:

“I am 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.

“We are delighted to report a record-breaking year for Frasers Group with adjusted profit before tax of £344.8m, despite the significant economic headwinds and well-chronicled challenges across the sector.

“Our elevation strategy has remained laser-focused, and we have restructured our team to execute it with conviction. It is underpinned by our core strengths and rock-solid foundations. Although the backdrop remains challenging, this momentum gives us the confidence of achieving adjusted profit before tax of between £450m and £500m for the next financial year.”

Photo courtesy Sports Direct