Frasers Group Share Price Edged Higher on H1 FY 2024 Results

The Frasers Group PLC (LON: FRAS) share price edged 0.67% higher after releasing its half-year results for the 2024 financial year, which ended on 29 October 2023. The company has made significant strategic advancements, including sustained growth in revenue and profit, particularly in the UK Sports and International sectors.

The company also successfully introduced new brands like The North Face and On Running, enhancing brand partnerships. The company completed its warehouse automation, expected to reduce inventory by 5% to 15% in the next year. 

The firm also efficiently integrated acquired entities like Studio Retail and Sportmaster, promising improved future efficiency and profitability. Its retail trading profit surged to £364.7m, a 25.7% increase, thanks to Sports Direct's robust performance and enhanced brand relationships.

Frasers' Adjusted Profit Before Tax (APBT) rose 12.6% to £303.8m despite lower property and subsidiary sales gains. Reduced impairments due to solid trading also contributed. The company reported a Profit Before Tax (PBT) of £310.2m, up 8%, and a post-tax profit increase of 5.6% to £234.6m.

UK Sports recorded a 0.8% revenue increase and a significant profit growth of 74.7%, driven by Sports Direct. Despite a 3.1% revenue increase in the premium lifestyle segment, trading profit decreased due to clearance sales and legacy store closures.

The company’s international retail recorded a 13.2% revenue growth, primarily from Game Spain and Sports Direct Europe. The firm has enhanced its focus on Sports Direct's growth, aiming to be the top sports retailer in EMEA.

Michael Murray, Chief Executive of Frasers Group, said: “We have delivered a strong performance in the first half of the year, with great momentum as we head into the Christmas trading period. The elevation strategy continues to drive strong trading performance across the business with good growth in Sports Direct supported by our brand partners. Our long-term ambitions for our Premium Lifestyle business remain unchanged, although it is likely that progress will remain subdued for the short to medium term in the face of a softer luxury market; however, we continue to invest with confidence in our unique proposition.”

Frasers Group share price. 

The Frasers Group share price edged 0.67% higher to trade at 916.35p from Wednesday’s closing price of 910.25p.