Frasers Group interims soar as stores re-open, but cautious on Covid, cost rises
By Frank Prenesti
Date: Thursday 09 Dec 2021
(Sharecast News) - Sports Direct owner Frasers Group reported a 75% rise in interim profit, driven by the strong reopening of stores after lockdown, new Flannels stores and continued growth in online sales.
Pre-tax profit was £186.0m, up from £106.1m a year ago. The company, owned by Mike Ashley said physical and online sales continued to be strong but sounded a note of caution over cost increases, supply chain issues and potential squeezes on consumer spending power.
On an adjusted basis, pre-tax profit came in at £186.8m for the six months to October 24, up from £115.5m a year earlier. Group revenue rose 23.6% to £2.34bn.
"There is also still the risk that Covid-19 measures could adversely affect outlook and we are now seeing restrictions return, including lockdowns in Europe," the company said on Thursday, adding that it expected adjusted pre-tax profit of £300m - £350m for the full year to April 24 assuming there are no substantial lockdowns imposed in the UK, particularly over the important Christmas period.
Frasers said its UK sports retail arm, which includes Sports Direct as well as Evans Cycles and GAME UK brands, saw sales climb 28% to £1.37bn for the half year.
"Premium lifestyle" brands, which include House of Fraser, Flannels and Jack Wills, saw revenues increase by 34% to £428m, largely due to new Flannels stores, continued growth in online, and growth in House of Fraser, the group said.
The company booked a £135m accounting charge to take into account restrictions returning to parts of Europe.
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