UK-based retailer Frasers Group has reported group revenue of £4.9bn ($6.5bn) in the fiscal year 2025 (FY25) - a 7.4% decrease from FY24.
Operating profit showed a rise of 8.2% to £557m, but reported profit before tax took a 24.3% downturn to £379.4m.
Both the retail gross margin and the group gross margin experienced an increase, with retail profit from trading climbing 2% to £747.3m. The rise is attributed to an enhanced product and retail mix which is expected to be sustainable.
However, group profit from trading saw a decrease of 2.5% to £808.9m.
In contrast, adjusted profit before tax (APBT) witnessed growth of 2.8%, reaching £560.2m.
UK sports retail declined 7.2% to £2.698bn and premium lifestyle by 14.8% to £1.048bn, while international retail saw a slight increase of 1.3% to £1.007bn.
Frasers Group chief executive Michael Murray stated: “I’m pleased with our performance this year, despite the headwinds caused by last year’s budget.”
The company stated that it is “building a broader platform for multi-year, sustainable profitable growth”.
It has strengthened its relationships with major brands such as Nike, Adidas and Hugo Boss, with Michael Murray appointed to the Hugo Boss supervisory board.
The group's acquisition integrations and automation synergies have realised £127.2m in savings, compensating for planned reductions in low-margin sales and the right-sizing of various brands.
Warehouse efficiency improvements have led to a £224.7m reduction in gross inventory, meeting the upper end of the target range.
Murray added: “We continued our strategy of confidently investing for the future, unlocking multiple opportunities for sustainable medium- to long-term growth. We accelerated our international expansion, announcing partnerships in Australia, Asia and EMEA [Europe, the Middle East and Africa], to further build Sports Direct into a truly worldwide proposition.
“We captured over £125m of synergies through strategic acquisition integrations and cost-savings, and continued to invest in real estate opportunities that deliver great value for the group.”
Frasers Group anticipates an improvement in UK consumer confidence and trading conditions in 2025.
The company is preparing for macroeconomic challenges and additional costs from 2024's budget but remains focused on efficiency and growth.
The expected APBT for FY26 is projected to be between £550m and £600m, excluding the results from the recent acquisition of XXL ASA.
Murray added: “For FY26 so far, we are seeing positive momentum across the group, including strong performance at Sports Direct – and we have big ambitions to continue to raise the bar. We are working hard to mitigate the £50m-plus of extra costs caused by last year’s budget, and we are currently expecting FY26 APBT in the range £550m to £600m.”
In June 2025, Frasers stepped back from acquiring cosmetics company Revolution Beauty.
