Frasers says 'ambition remains high' as it defies retail headwinds

Frasers Group has delivered what Chief Executive Michael Murray calls "a solid start to FY26" despite the increasingly difficult retail backdrop, as the business leans harder into its Elevation Strategy and accelerates its global footprint.

Revenue rose 5% to £2.58 billion, fuelled by a 42.8% jump in international sales as Sports Direct expands across Europe, the Middle East and Australia.

Retail profit from trading increased 12.2% to £411.4 million and Flannels returned to growth. Premium Lifestyle’s trading profit rose 9.2% to £61.5 million.

Overall profit before tax slipped 2.8% to £290.9 million. The group absorbed an £82.3 million increase in impairments and higher interest costs, partially offset by a £33.8 million gain from the sale of Coventry Arena and £41.1 million linked to premiums from strategic investments.

The Elevation Strategy remains the heartbeat of Frasers Group. Relationships with Nike, Adidas and Hugo Boss have strengthened further, with Murray now sitting on the Hugo Boss supervisory board. New acquisitions in South Africa and the Nordics are being integrated, and the group has opened Sports Direct stores with partners in Malta, Australia and the Middle East.

In the UK, Frasers has continued its property spree, acquiring shopping centres and retail parks in Greenock and Almondvale. After the period, it will also complete the £217.6 million acquisition of Braehead. It also opened its biggest Sports Direct flagship yet in Liverpool and invested in US luxury retailer The Webster.

Frasers Plus, the group’s fintech engine, remains a growth driver. Active customers jumped to 1.1 million from 400,000 a year ago, and the platform accounted for 20% of UK online sales. The group is pressing ahead with its long-term targets of over £1 billion in sales.

Michael Murray, CEO of Frasers Group

Murray added: "We’ve made a solid start to FY26 even though market conditions are tough, consumer confidence is very subdued and excess inventory continues to weigh on the industry, leading to increased promotional activity.

"We are continuing to invest boldly in our Elevation Strategy - deepening brand partnerships, elevating our product mix, opening new Sports Direct stores internationally, and acquiring strategic properties to strengthen our portfolio. These steps reinforce our ambition and give us real confidence in the substantial long-term opportunities ahead for the Group."

Looking ahead, Frasers reiterated its full-year APBT forecast of £550 million to £600 million.