Frasers Group profit jumps 8% in first half, expects further gain

Frasers Group (LSE: FRAS) reported an 8.0% increase in pretax profit to £310.2 million for the 26 weeks to October 29, from £287.2 million a year earlier.

The owner of retail chains including Sports Direct, Flannels and House of Fraser said first-half revenue also grew 4.4% to £2.77 billion. Despite the gains, Frasers shares were trading flat on Thursday morning after initially rising 1.2% at the open.

In its interim results statement, Frasers said sales momentum has continued into the second half of its financial year. It expects to post adjusted pretax profit between £500 million and £550 million for the full year ending April 2023, which would represent an increase of at least 4.6% compared to the prior year. The company reported strong growth in its premium lifestyle and international retail divisions.

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Frasers Chief Executive Michael Murray said the firm is building a “diverse business for sustained multi-year growth” and expects “further profitable growth” next year. The retailer’s shares have risen 27% year-to-date.