The group’s retail and gross margins improved by 170 and 150 basis points (bps) respectively, as it benefitted from an enhanced product and channel mix. The performance was driven by the company’s elevation strategy, operational synergies, and a broadened international presence.
The revenue increased due to reflecting planned exits from low-margin segments like Game UK and Studio, and the impact of right-sizing JD Sports acquisitions and SportMaster Denmark. Despite this, UK Sports posted a profit rise of 1.6 per cent, while premium lifestyle trading profit surged 14.7 per cent to £157.4 million, helped by improved gross margins and cost reductions, Frasers Group said in a press release.
“I am pleased with our performance this year, despite the headwinds caused by last year's Budget. We remain fully committed to our Elevation Strategy, which drove another record year of profitable growth and further delivery of our key priorities. We continued our strategy of confidently investing for the future, unlocking multiple opportunities for sustainable medium- to long-term growth,” said Michael Murray, chief executive of Frasers Group.
Sports Direct's international expansion was a key highlight, with new partnerships secured across Australia, Southeast Asia, the Middle East, and Africa. Notable acquisitions included Twinsport in the Netherlands, and after the year-end, XXL ASA in Scandinavia and Holdsport in South Africa/Namibia. Michael Murray also joined the Hugo Boss supervisory board, underscoring deepened brand partnerships.
Frasers Plus, the group’s financial services arm, added 507,000 new customers, taking its post-year-end active base past one million. It contributed 12.2 per cent to UK online sales in FY25 and is on track to meet long-term targets of over £1 billion in sales and £600 million in credit balances.
Despite a reported pre-tax profit decline of 24.3 per cent to £379.4 million—due to foreign exchange losses and non-cash fair value movements on equity derivatives—the group maintained strong operational cash flow (£800.4 million) and increased net assets to £1.99 billion. Capital expenditure (capex) and strategic investments, especially in Accent Group and Hugo Boss, pushed net debt to £847.5 million.
Looking ahead, the group remained focused on scaling Sports Direct globally, strengthening brand partnerships, leveraging automation, and expanding Frasers Plus. Its new £3 billion credit facility signals strong backing for continued execution of its long-term Elevation Strategy.
“For FY26 so far, we are seeing positive momentum across the group, including strong performance at Sports Direct - and we have big ambitions to continue to raise the bar. We are working hard to mitigate the £50 million-plus of extra costs caused by last year's Budget, and we are currently expecting FY26 APBT in the range £550-600 million. Looking further forward, we remain confident in our strategy and our plans to deliver multi-year, sustainable profitable growth,” added Murray.
ALCHEMPro News Desk (SG)
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