Frasers Group annual revenues rise as it benefits from acquisition spree
Frasers Group has reported a 15.8% increase in revenue to £5.5 billion for the year ending 30 April 2023, boosted by profitable growth in sports retail.
The UK Sports Retail division saw revenue rise 16.7% to £3 billion, largely due to the impact of its acquisition of Frasers Group Financial Services (formerly Studio Retail Limited) in February 2022.
The Premium Lifestyle division reported a 14.8% rise in revenue to £1.2 billion, with the impact of planned store closures at House of Fraser more than offset by new Flannels store openings and continued growth in online.
International Retail revenue increased 15.2% to £1 billion, credited to the group's acquisition of Sportmaster last year and an increase in the Malaysian business, offset by the reduction in revenue following the disposal of the US retail businesses in May 2022.
The Wholesale & Licensing segment saw revenue grow 12% to £188.3 million.
Gross profit increased 13.5% to £2.3 billion, whilst gross profit margin dropped 90bps to 42.6%. This reflects the improvements in Sports Direct's product mix, mitigated by the impact of House of Fraser store closures, brand consolidation, and a "very strong" post-pandemic comparative of full price trading.
Looking ahead, the group expects "strong" profit progress during FY24. It also anticipates "good" progress on acquisition integration synergies and cost mitigation exercises.
Frasers Group said the new financial year has started well, especially at Sports Direct, which continues to benefit from the strengthening relationships with brand partners.
Michael Murray, CEO of Frasers Group: "In my first full year as Chief Executive, we have delivered a strong performance across the group.
"We were bold in setting our full year guidance twelve months ago, before the full impact of the cost-of-living crisis was clear, but our business has remained resilient, and we have met these expectations.
"We enter the new financial year in a strong position and are determined to unlock further growth, underpinned by our laser focus and acceleration of our elevation strategy."
