FRASERS GROUP Plc (LON:FRAS) has announced its Full year results for the 52 weeks ended 27 April 2025.
Building a broader platform for multi-year, sustainable profitable growth
Michael Murray, Chief Executive of Frasers Group:
“I’m 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. We accelerated our international expansion, announcing partnerships in Australia, Asia and EMEA, to further build Sports Direct into a truly worldwide proposition. Our relationships with the world’s best global brands, including Nike, adidas and HUGO BOSS, are the strongest they have ever been, and our ambitious growth plans are now strengthening and scaling these partnerships even further. We captured over £125m of synergies through strategic acquisition integrations and cost-savings, and continued to invest in real estate opportunities that deliver great value for the Group. Frasers Plus is going from strength-to-strength and is on track to meet its long-term ambitions. Delivering on all of these priorities demonstrates disciplined execution business-wide, but there is still more important work to be done.
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 £50m-plus of extra costs caused by last year’s Budget, and we are currently expecting FY26 APBT in the range £550m-600m*. Looking further forward, we remain confident in our strategy and our plans to deliver multi-year, sustainable profitable growth. Thank you to our teams for their continued hard work and dedication.”
* Excluding the results of XXL ASA which was acquired by the Group on 27 June 2025.
Headlines
· Continued strategic progress against key priorities:
1. Focus on underlying profitable growth
· APBT (2) of £560.2.m (+2.8%). Another year of record profitable growth, with H2 APBT up 8.3%.
· Group and retail gross margin % up 150bps and 170bps year-on-year respectively, driven by improved product and retail mix which is expected to be sustainable.
· Delivered £127.2m of underlying cost-savings and synergy benefits, largely from recent investments in warehouse automation and acquisitions.
· Another period of sales growth in Sports Direct UK. UK Sports profit from trading up £7.4m (1.6%) to £475.8m.
· Premium Lifestyle’s profit from trading up £20.2m (14.7%) to £157.4m, driven by integration and other cost benefits offsetting the continuing challenges in the luxury market.
· Disposed of the non-core, low profit margin Game Spain business for €25m.
2. Elevation Strategy, best brands and international expansion
· A breakthrough year for Sports Direct’s international ambitions, with new or extended strategic partnerships and acquisitions announced worldwide, building a broader platform for global growth.
· Driving even stronger relationships with the biggest global brands, including with strategic brand partners Nike, Adidas, HUGO BOSS. After period end, Michael Murray was appointed to the HUGO BOSS supervisory board.
· Further UK property investments at attractive yields to satisfy our occupational demand, with new shopping centres and retail park acquisitions including Doncaster’s Frenchgate, Exeter’s Princesshay, Maidstone’s Fremlin Walk, and Affinity outlets.
· Continue to invest in UK luxury and premium retail, further consolidating a market that is showing early signs of becoming less challenging. Added 12 new stores and over 400k sq. ft, including FLANNELS Leeds and FRASERS/Sports Direct Sheffield.
3. Acquisition integrations and automation synergies
· £127.2m of underlying cost savings and synergies offset the planned reductions in low margin sales at Studio and Game, and the impact of right-sizing JD Sports Fashion Premium Brands and SportMaster in Denmark.
· Increased warehouse efficiency, driven by automation and rationalisation of our warehouse estate, enabled a £224.7m (15.0%) reduction in gross inventory year-on-year, at the top end of our 5-15% target range (excluding the impact of the disposal of Game Spain).
4. Frasers Plus
· Good progress towards our long-term ambitions of delivering £1bn+ in sales, £600m in credit balances, a greater than 15% yield, and over 2 million active Frasers Plus customers (excluding any third-party partnerships). The business added 507k new customers in FY25 and Frasers Plus accounted for 12.2% of UK online sales. Post year-end, the active customer base has passed one million and penetration has increased to 18.9%.
· Strategic partnerships with THG, Hornby and Marks Electrical continue to grow. Further partnerships with Super Payments and eBuyer underway after period-end.
5. Strong balance sheet and cash flow
· The Group’s strategy is underpinned by a strong balance sheet with net assets increasing to £1,988.1m from £1,873.0m at FY24. Net assets per share increased to £4.41, a three-year CAGR of 18.0%.
· Cash inflow from operating activities before working capital movements of £800.4m has enabled the Group to continue to invest in international sports, UK luxury retail, Frasers Plus, our property portfolio and our strategic partnerships such as HUGO BOSS and Accent Group.
· Net debt excluding securitisation of £847.5m (£320.8m at FY24), reflecting capital expenditure and strategic investments in FY25, particularly Accent Group and HUGO BOSS.
· After period-end, we announced that we secured a new £3.0bn Term Loan and Revolving Credit Facility, replacing the previous £1.65bn arrangement, with options to extend the term up to five years and increase the facility by £0.5bn. We wish to thank our banking partners for their significant support of Frasers Group and our ongoing execution of the Elevation Strategy.
Outlook
Following an especially weak period after last year’s Budget, both UK consumer confidence and trading conditions improved into 2025, and recent sales trends have been more encouraging. For FY26, we are mindful of the various macro headwinds and still expect to incur at least £50m of incremental costs as a result of last year’s Budget, but we are working hard to mitigate those by taking more costs out, focussing on potential efficiencies through the use of AI, realising further acquisition synergies, and sustaining a robust gross margin. We will not compromise on our ambitious plans to build a broader platform for long-term growth and remain fully committed to sustained long-term investment in our successful Elevation Strategy and international expansion. We are currently expecting FY26 APBT in the range £550m-£600m*.
Longer term, we remain excited by the potential across the Group, especially for Sports Direct after our significant recent step up in international expansion, and for Frasers Plus, and expect these to contribute to our ambitious plans for developing and delivering multi-year, sustainable profitable growth.
* Excluding the results of XXL ASA which was acquired by the Group on 27 June 2025.
| FY25 | FY24 (1) | Change | |
| Income statement summary | |||
| UK Sports Retail | £2,698.1m | £2,908.9m | (7.2%) |
| Premium Lifestyle | £1,048.2m | £1,229.8m | (14.8%) |
| International Retail | £1,007.4m | £994.6m | 1.3% |
| Retail revenue | £4,753.7m | £5,133.3m | (7.4%) |
| Property | £86.6m | £72.7m | 19.1% |
| Financial Services | £85.3m | £111.0m | (23.2%) |
| Group revenue | £4,925.6m | £5,317.0m | (7.4%) |
| Retail gross margin | 45.6% | 43.9% | +170 bps |
| Group gross margin | 46.8% | 45.3% | +150 bps |
| Retail operating costs | (£1,418.9m) | (£1,521.1m) | 6.7% |
| Retail profit from trading | £747.3m | £732.8m | 2.0% |
| Other operating costs | (£92.3m) | (£73.6m) | (25.4%) |
| Fair value adjustments to investment properties | £13.1m | £11.5m | 13.9% |
| Gain on disposal of properties | £0.6m | £3.5m | (82.9%) |
| Group profit from trading | £808.9m | £829.5m | (2.5%) |
| Depreciation & amortisation | (£275.4m) | (£284.5m) | 3.2% |
| Impairments net of impairment reversals | £9.6m | (£21.4m) | 144.9% |
| Share-based payments | (£0.8m) | (£23.4m) | 96.6% |
| Foreign exchange realised | £14.7m | £14.4m | 2.1% |
| Operating profit | £557.0m | £514.6m | 8.2% |
| Reported profit before tax (“PBT”) from continuing operations | £379.4m | £501.0m | (24.3%) |
| Result from discontinued operations | £6.3m | (£6.5m) | |
| Fair value adjustment to derivative financial instruments | £46.8m | (£27.6m) | |
| Fair value losses and loss on disposal of equity derivatives | £141.6m | £68.9m | |
| Foreign exchange realised | (£14.7m) | (£14.4m) | |
| Share-based payments | £0.8m | £23.4m | |
| Adjusted profit before tax (“APBT”) (2) | £560.2m | £544.8m | 2.8% |
| Reported basic earnings per share (“EPS”) | 67.5p | 86.8p | (22.2%) |
| Adjusted basic EPS (2) | 98.1p | 95.8p | 2.4% |
| Balance Sheet summary | |||
| Property, plant & equipment | £1,097.2m | £962.6m | 14.0% |
| Investment property | £513.3m | £350.5m | 46.5% |
| Long-term financial assets | £959.1m | £495.4m | 93.6% |
| Inventories (net of provision) | £1,128.3m | £1,355.3m | (16.7%) |
| Net assets | £1,988.1m | £1,873.0m | 6.1% |
| Net assets per share | £4.41 | £4.16 | 6.1% |
| Cashflow & capital allocation | |||
| Cash inflow from operating activities before working capital | £800.4m | £834.6m | (4.1%) |
| Net capital expenditure | (£399.3m) | (£211.3m) | (89.0%) |
| Purchase of listed investments, net of disposal proceeds | (£694.0m) | (£249.3m) | (178.4%) |
| Purchase of own shares | – | (£126.4m) | 100.0% |
Summary of financial performance
· APBT (2) increased by 2.8% to £560.2m despite the non-recurrence of the £25.0m gain on disposal of the Missguided intellectual property in FY24, an £11.8m loss on disposal of Game Spain, and a £40.1m reduction in profit from trading in the Financial Services segment, due to our decision to wind down the Studio Pay receivables portfolio and focus on Frasers Plus, an approach which reduces revenue and increases impairment charges in the near-term. A net reversal of property related impairments of £9.6m has been recorded in the current period (FY24: £21.4m net impairment including impairments of intangible assets) as a result of our future forecasts outweighing our previous downside impairment assumptions.
· Reported PBT of £379.4m, a decrease of 24.3%. The Group’s trading performance has been offset by foreign exchange losses (vs. gains in FY24) and non-cash fair value movements on equity derivatives, primarily relating to the material decline in the HUGO BOSS share price. Both of these non-cash adjustments were exacerbated by the market reaction to proposed tariffs by the US government around the year-end date, impacts which, in the case of equity markets, have largely reversed since year-end.
· Group:
· Retail revenue decreased by 7.4%. Continued sales growth from Sports Direct, reflecting the ongoing success of the Elevation Strategy and strengthening brand relationships, and the acquisition of Twinsport was more than offset by planned declines in Game UK, Studio Retail, the companies acquired from JD Sports and SportMaster in Denmark as these previously unprofitable businesses were right-sized and put on a more sustainable footing. In addition, the luxury market continued to be challenging although it is now showing some early signs of improvement.
· Group gross margin % increased to 46.8% from 45.3% due to an improved mix effect, as the lower margin % businesses reduce as a proportion of total revenue and the higher margin Sports Direct and FLANNELS businesses increased their share.
· UK Sports (54.7% of total group revenue):
· Revenue decreased by 7.2%. Continued sales growth from Sports Direct reflecting the ongoing success of the Elevation Strategy and strengthening brand relationships, was more than offset by planned declines in Game UK and Studio Retail.
· Gross profit decreased by £50.8m as a result of the sales decline but gross margin % increased by +180 bps to 48.2% reflecting the fact that the higher margin Sports Direct business now makes up a greater proportion of this segment.
· Operating costs reduced by £58.2m as the benefits of integrating and right-sizing the lower margin businesses were realised. This contributed to a £7.4m (1.6%) increase in the segment’s profit from trading.
· Premium Lifestyle (21.3% of total group revenue):
· We continue to develop and invest in our unique luxury proposition, including the recent opening of FLANNELS in Leeds and FRASERS in Sheffield, and right-sizing the premium businesses such as House of Fraser and JD Sports acquisitions. Our long-term ambitions for the luxury business remain unchanged and we have taken this opportunity to consolidate in order to further strengthen our position.
· Revenue decreased by 14.8% as we continued to optimise our store portfolio in House of Fraser and in the businesses acquired from JD Sports, reducing the number of stores from 44 at 28 April 2024 to 29 at 27 April 2025.
· Segment profit from trading increased by £20.2m as a £43.8m decrease in gross profit, driven by the revenue decline noted above, was more than offset by a 230bps increase in gross margin % from 37.1% to 39.4% (the result of an improving mix effect with FLANNELS increasing its share) and a £64.0m decrease in operating costs as the benefits of integrating and right-sizing the premium businesses was realised.
· International Retail (20.5% of total group revenue):
· Revenue increased by 1.3% due to growth from the Sports Direct International business and the acquisition of Twinsport, partially offset by Sportmaster, which was integrated in FY24.
· Segment profit from trading decreased by £13.1m year-on-year. Gross profit increased by £6.9m as a result of the revenue growth noted above, whilst overhead costs increased by £20.0m due to inflationary pressures and acquisition related costs.
· Working with our global brand partners, FY25 was a breakthrough year for our international growth ambitions for Sports Direct, both deploying our consistently strong cash flow and signing capital-light partnerships. We extended our partnership with MAP Active and now plan 350 new stores, further into Indonesia plus five new countries: India, the Philippines, Thailand, Vietnam, and Cambodia. In Australia/New Zealand, we increased our investment in Accent Group to 14.57% (and to 19.57% after year-end), and announced a long-term strategic partnership which includes plans for at least 50 Sports Direct stores in the first six years and a long-term objective of 100. We also signed a new partnership with GMG, targeting 50 new Sports Direct stores in the Gulf/Egypt over the next five years. In Africa, we announced the acquisition of Holdsport in South Africa/Namibia (completed after year end), and acquired a significant shareholding in Hudson, providing expansion opportunities into Africa/Malta. In addition, we completed the acquisitions of Twinsport in the Netherlands and, after year end, XXL in Scandinavia.
· Property (1.8% of total group revenue):
· Property investment remains a key focus for the Group, unlocking occupational demand for our retail business whilst delivering strong returns that can be recycled at the appropriate time.
· Revenue increased by £13.9m (19.1%), due to the annualisation of prior year acquisitions such as the Castleford shopping centre and acquisitions in FY25 including Doncaster’s Frenchgate, Exeter’s Princesshay, Maidstone’s Fremlin Walk, and Affinity outlets.
· Segment profit from trading increased by £5.0m, with the additional rental income being partially offset by an £5.8m increase in operating costs (including purchase related costs).
· Financial Services (1.7% of total group revenue):
· We see a great opportunity for Frasers Plus as a new revenue stream and a key pillar of our compelling brand ecosystem.
· Frasers Plus continues to make good progress towards our long-term ambition of delivering £1bn+ in sales, £600m in credit balances, a greater than 15% yield, and over 2 million active Frasers Plus customers (excluding any third-party partnerships). The business added 507k new customers in FY25 and Frasers Plus accounted for 12.2% of UK online sales. Post year-end, the active customer base has passed one million and penetration has increased to 18.9%.
· We continue to prioritise the growth of our new Frasers Plus credit offering and reduce the Studio Pay receivables book, which is now closed to new customers, and as a result, revenue decreased by £25.7m (23.2%) vs. FY24.
· Segment profit from trading decreased by £40.1m due to the revenue decline noted above and an increase in overhead costs arising from the dual running of Frasers Plus and Studio Pay. FY24 also benefited from an £11.8m gain in respect of exiting a legacy property lease.
· Strategic partnerships with THG, Hornby and Marks Electrical continue to grow. Further partnerships with Super Payments and eBuyer underway after period-end.
· Basic EPS of 67.5p, a decrease of 19.3p (22.2%) year-on-year. Adjusted EPS (2) of 98.1p, an increase of 2.3p (2.4%) reflecting the increase in APBT (2) partially offset by an increase in effective tax rate.
· The Group’s strategy is underpinned by a strong balance sheet with net assets increasing to £1,988.1m from £1,873.0m at FY24 due to the Group’s profitability in FY25, partially offset by a decrease in the fair value of the Group’s strategic investments recognised in other comprehensive income. Net assets per share increased to £4.41, a three-year CAGR of 18.0%.
· Cash inflow from operating activities before working capital movements of £800.4m has enabled the Group to continue to invest in international sports and leisure, UK luxury retail, Frasers Plus, our property portfolio and our strategic partnerships such as HUGO BOSS and Accent Group.
· Net debt excluding securitisation of £847.5m (£320.8m at FY24), reflecting capital expenditure and strategic investments in FY25, particularly Accent Group and HUGO BOSS.
Acquisitions and investments
· During FY25, the Group has made further substantial strategic investments, particularly in HUGO BOSS as the Group continues to explore opportunities to expand commercial relationships and further develop the Group’s ecosystem.
· After period end, the Group completed the acquisition of Holdsport in South Africa/Namibia and XXL ASA in Scandinavia. We will continue to collaborate with relevant stakeholders and share best practices, in line with our international expansion strategy, but it is too early to say what the financial impact will be given the significant challenges XXL has seen in recent years.
· Group representative appointed to the Board of Mulberry plc effective from 30 July 2025.
Other notes
(1) Restated to reflect the classification of the results of Game Spain as a discontinued operation and the reclassification of delivery income and costs associated with free-issue gift vouchers from selling, distribution and administrative expenses to revenue. Please refer to note 1 of the financial information for further details.
(2) This is an Alternative Performance Measure, for which the reconciliation to the equivalent GAAP measure is set out in note 3 to the financial information. Adjusted EPS is discussed in note 9 to the financial information.
