Frasers Group delivered a resilient first half for FY26, with revenue up 5% to £2.58 billion and retail trading profit up 12.2% to £411.4 million, despite strong retail headwinds. Adjusted profit before tax dipped 2.8% to £290.9 million, but reported profit before tax surged 97% to £412.1 million, boosted by gains on strategic investments. Chief executive Michael Murray described the results as a “solid start to FY26”.
Digital at the core
Founded in 1982 as Sports Direct, Frasers Group became the UK’s largest sports retailer before rebranding in 2019 to reflect broader ambitions. The acquisition of House of Fraser in 2018 marked a move into department store retail, though that brand now operates mainly online. Today, Frasers spans sports, premium, and luxury, with digital strategy at the core of its growth plans.
Frasers Plus, the group’s credit and loyalty platform, now has 1.1m active customers and accounts for 20% of UK online sales. The launch of ELEVATE, a retail media network using first-party data, positions Frasers as a serious player in retail media, a fast-growing channel for monetising digital audiences. Investments in AI-driven personalisation and app enhancements underline its omnichannel ambitions.
Market context
The UK sportswear market, forecast to grow from $6.5 billion (£5.13 billion) in 2024 to $8.5 billion (£6.71 billion) by 2030, is shaped by ecommerce, social commerce, and sustainability. Frasers’ digital investments position it to capitalise on these trends while offsetting cost pressures in physical retail.
While Sports Direct already appeals to digital-first, younger consumers, Frasers is expanding its reach into the Gen Z market through its growing stake in British online fashion retailer ASOS, now at 25.94%. ASOS’s interactive shopping features and influencer collaborations complement Frasers’ push beyond sportswear into fast fashion.
Frasers Group’s first-half numbers show resilience in the face of a tough market in which consumer confidence is low and retailers are struggling with the challenges of excess inventory. Despite this, it has successfully continued its trajectory from discount sports chain to digitally powered retail ecosystem – and is looking forward to further growth.
“We are continuing to invest boldly in our Elevation Strategy – deepening brand partnerships, elevating our product mix, opening new Sports Direct stores internationally, and acquiring strategic properties to strengthen our portfolio,” said Michael Murray. “These steps reinforce our ambition and give us real confidence in the substantial long-term opportunities ahead for the Group.”
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