Frasers Group has reported strong revenue rises across its portfolio, but remains “cautious” of the impacts of macroeconomic factors such as a potential lockdown over Christmas.
The department store group, headed by Mike Ashley, posted a 75.3% surge in pre-tax profit to £186m in the 26-week period to October 24.
Frasers Group, which operates the Sports Direct, Flannels and Frasers fascias, recorded revenue increases across all its divisions in the period.
Total revenues were up 23.6% to £2.3bn, which the group attributed to strong store reopenings, continued online growth and new store openings, as well as the impact of lockdown closures in the comparable period last year.
Frasers said UK sports retail revenues were up 27%, while premium lifestyle sales grew 33.6% – largely due to the opening of the new Flannels flagship.
European revenues for the group also grew by 13.6%, which it attributed to growth in the Irish market.
Frasers said it expects profits for the full year to be in line with expectations to achieve an adjusted profit before tax of between £300m to £350m, but it warned that this could be dampened by potential macroeconomic headwinds.
Frasers Group said in its statement: “We do remain cautious with a number of well-publicised macroeconomic headwinds on the horizon in the form of, but not limited to, cost increases, supply chain issues and potential squeezes on consumer spending power.
“There is also still the risk that Covid-19 measures could adversely affect the outlook and we are now seeing restrictions return, including lockdowns in Europe.”
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