Frasers Group report strong H1 driven by international growth

Frasers Group PLC reported a "solid start" to the first half of fiscal year 2026, driven by continued progress in its Elevation Strategy and strong international expansion, despite challenging market conditions and excess industry inventory.

Group revenue rose 5 percent to 2.6 billion pounds, primarily fueled by international retail, which saw a 42.8 perent increase, benefiting from major acquisitions like Holdsport and XXL.

CEO Michael Murray highlighted deepening brand partnerships, with his appointment to the Hugo Boss supervisory board, and the successful growth of the luxury Flannels business, which returned to sales growth with a 410 basis point improvement in gross margin. “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. While we remain cautious into the second half, our focus is unwavering as we confront these challenges head-on, and we are today re-iterating our FY26 APBT guidance of £550m to £600m," he said.

While adjusted profit before tax (APBT) for the first six month period slightly decreased by 2.8 percent to 290.9 million pounds, mainly due to an 82.3 million pounds increase in tangible and intangible asset impairments, the core retail segments demonstrated improved profitability, with Group gross margin increasing by 160 basis points to 47.3 percent.

Retail profit from trading grew by 12.2 percent to 411.4 million pounds. The company continued its strategy of portfolio optimization and investment, including the growth of its Frasers Plus customer base to 1.1 million, and reiterated its full-year APBT guidance of 550 million pounds to 600 million pounds.

The company opened its first stores with partners in new markets, including Malta, Australia, and the Middle East, reinforcing its platform for global growth.