Frasers Group FY25 results: Profit up despite revenue dip

Frasers Group PLC today announced its full-year financial results for the 52 weeks ended April 27, 2025, highlighting another year of profitable growth and progress against its Elevation Strategy. The Group reported an adjusted profit before tax of 560.2 million pounds, marking a 2.8 percent increase year-on-year.

Despite a 7.4 percent decrease in total Group revenue to 4.9 billion pounds, primarily due to planned declines in lower-margin businesses like Game UK and Studio Retail, and challenges in the luxury market, the Group achieved improvements in profitability. Retail gross margin increased by 170 basis points to 45.6 percent, and Group gross margin rose by 150 basis points to 46.8 percent, driven by an improved product and retail mix.

Michael Murray, chief executive of Frasers Group, expressed satisfaction with the performance, stating that the results reflect broad-based strength and clear evidence that their strategic agenda is gaining traction. He emphasized the commitment to the Elevation Strategy, which has unlocked multiple opportunities for sustainable medium- to long-term growth, including accelerated international expansion and strengthened relationships with global brands such as Nike, Adidas, and Hugo Boss.

Segmental performance highlights

UK Sports retail revenue decreased by 7.2 percent, primarily due to planned declines in Game UK and Studio Retail. However, profit from trading for this segment increased by 1.6 percent to 475.8 million pounds, driven by improved gross margin and reduced operating costs from integrating lower-margin businesses.

Premium Lifestyle revenue decreased by 14.8 percent as the Group optimised its store portfolio, reducing the number of stores from 44 to 29. Despite this, segment profit from trading increased by 20.2 million pounds or 14.7 percent to 157.4 million pounds, benefiting from a 230 basis point increase in gross margin and significant reductions in operating costs.

International Retail segment saw a 1.3 percent increase in revenue, driven by growth from Sports Direct International and the acquisition of Twinsport. The company announced new or extended strategic partnerships in Australia, Asia, and EMEA, including plans for hundreds of new Sports Direct stores in countries like India, the Philippines, Thailand, Vietnam, Cambodia, and across the Gulf/Egypt.

Property revenue increased by 19.1 percent to 86.6 million pounds, and financial services (Frasers Plus) revenue decreased by 23.2 to 85.3 million pounds.

Frasers Groups reveals outlook for FY26 For FY26, Frasers Group anticipates APBT in the range of 550 million pounds to 600 million pounds, despite expecting to incur at least 50 million pounds in incremental costs due to last year's budget. The Group remains committed to its long-term investment in the Elevation Strategy and international expansion, focusing on mitigating costs through efficiencies, AI utilization, and further acquisition synergies.

"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-600m,” added Murray.