Frasers Group, formerly known as Sports Direct International, has become the latest to warn on profits amid the fallout from the global Covid-19 pandemic.
The company, whose stores include House of Fraser, Jack Wills, Flannels and Sports Direct, today (20 March) said the outbreak is causing “significant disruption” to its business, including reducing customer footfall.
As a result, it doesn’t expect to reach its guidance of 5% to 15% EBITDA growth for the current financial year ending 26 April. It added the group’s year-to-date performance had been in-line with expectations prior to Covid-19.
“The company has a strong management team which can adapt and respond quickly to challenges and changing market conditions. Over the longer term, the board remains confident in focussing on the company’s elevation strategy,” it said.
Sports Direct International, which bought the House of Fraser department store chain last year, announced in November it would rebrand as the Frasers Group Plc to reflect its changing focus as a lifestyle and luxury retailer.
Its warning comes as several UK retailers have reported the negative financial impact on their business from the coronavirus outbreak. Next has warned it could lose up to GBP1bn (US$1.15bn) in sales as the coronavirus impacts demand, while Marks & Spencer today said it is cutting clothing orders by GBP100m and preparing for some store closures.
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