Although Frasers Group reported a 2.8% gain in its yearly profits, it cautioned that its profitability will be weaker in the upcoming year as it struggles with an additional US $ 67 million in expenses brought on by changes in the previous year’s budget.
Despite group revenue dropping 7.4% to US $ 6.61 billion in the 52 weeks ending 27th April, the owner of Sports Direct generated an adjusted pre-tax profit of US $ 750.53 million.
Taking into consideration the at least US $ 67 million of incremental costs as a result of last year’s Budget, it anticipates generating an adjusted profit before tax that is between US $ 737 million and US $ 804 million.
Frasers intends to maintain a strong gross margin, realise more acquisition synergies, and counteract the challenges posed by possible efficiencies through the use of AI.
The retail behemoth claimed to have saved US $ 170 million last year by reducing low-margin sales at its Studio and Game operations and US $ 301 million by increasing warehouse efficiency.
This helped counteract the 14.8% loss in sales in its premium lifestyle division and the 7.2% decline in sales in its UK sports arm.
By forming new alliances in Australia, Asia, and EMEA, the group expedited its global expansion over the year.
The Chief Executive of Frasers Group stated that the company had achieved over US $ 167 million in synergies through strategic acquisition integrations and cost-saving measures, while continuing to invest in high-value real estate opportunities for the group.
For the 2026 financial year to date, the group is reportedly experiencing positive momentum, including strong performance at Sports Direct, and is pursuing ambitious goals to further elevate its operations.
