Frasers Group, which owns Sports Direct and Flannels, reported a YoY jump of 38.9% in reported profit before tax (PBT) to £527.8m.
For the 52 weeks ending 26 April 2026, Frasers’ international revenue grew by 59.2% over the period, helping to offset subdued trading conditions, lingering industry-wide inventory challenges and weaker consumer confidence through the latter half of the fiscal year and into the start of FY27.
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
The group’s stated “Elevation Strategy”, centring on brand partnerships and enhanced retail experiences, remained a key driver.
CEO Michael Murray said the group plans to continue investing in growth initiatives, despite ongoing market headwinds.
“The Elevation Strategy is going from strength-to-strength, with positive momentum from brand partners and strong feedback from consumers validating our strategy and giving us the confidence to continue to execute with ambition and conviction,” he said in a statement.
“However, we continued to feel the impact of tough trading conditions, subdued consumer confidence and industry-wide excess inventory levels through Half 2 and into the start of FY27. These pressures are weighing on the entire sector, creating a prolonged and challenging environment, meaning the full potential of this progress has not yet been realised.
“Despite these external factors, the Group remains focused, resilient and will continue to invest in opportunities that support sustainable profitable growth.”
Frasers’ FY26 overview
The group and retail gross margins improved by 160 and 150 basis points respectively, attributed to better product access and an evolving retail mix, with UK Sports and Premium Lifestyle showing particular strength through a 290-basis-point margin increase each.
UK Sports’ profit from trading rose by 17.6% to £559.4m, aided in part by reduced legal and regulatory provision costs.
Within the premium segment, Frasers Group said gross profit remained steady at £412.7m, as a decline in revenue was offset by margin improvements, with its Flannels business returning to sales growth and contributing significantly to group sales with a more targeted product offering.
Frasers Group’s adjusted profit before tax declined by 4% to £538m, in part due to increased asset impairments and higher interest costs.
During the fiscal, the company reported a net gain of £33.8m from the sale of the non-core Coventry Arena business at a consideration of £50m, alongside an increase in premium income from strategic investments and higher profit shares from associates.
Retail profit from trading rose 22.1% to £912.5m, attributed to organic growth, provision releases, and contributions from international acquisitions.
‘Tough trading conditions’ hit Frasers
However, Sharon Iles, senior apparel analyst at GlobalData, noted that the overall 8.7% increase in revenue was driven “almost entirely” by a 59.2% surge in international retail revenue following the acquisitions of Holdsport and XXL.
“Frasers Group kept feeling the impact of tough trading conditions, subdued consumer confidence and industry-wide excess inventory through the second half of the year,” she added.
“Adjusted profit before tax fell short of expectations, coming in at £538.0m against the Group’s own guidance range of £550m to £600m, sending shares down c.4.9% in early morning trading.”
Iles also noted Fraser Group’s continued focused on expanding its retail footprint, including Sports Direct’s new 90,000 sq ft flagship in Liverpool.
“The segment’s improvement still appears heavily dependent on mix shift and cost discipline to offset softer revenues, implying a genuine recovery in underlying demand has yet to materialise.”
What next for Frasers Group?
Frasers Group declined to provide FY2026/27 guidance as it shared its FY26 results, citing its ongoing takeover offers for Hugo Boss and Accent Group.
The Hugo Boss board recently urged shareholders to reject Fraser Group’s bid, describing the proposal as financially “inadequate”.
Iles also highlighted that Frasers Group has recently taken a stake in The Webster, a US luxury multi-brand retailer. She said this will “extend its premium reach beyond the UK”.
Fraser Group’s plans to roll out a Membership scheme across its premium Flannels and Frasers plans next year were also noted for “mirroring the loyalty-driven approach that’s underpinned Frasers Plus in UK Sports.”
