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Sports Direct and House of Fraser owner Frasers Group has reported a 15.8% rise in full year revenue to £5.56 billion as a result of its recent acquisitions of struggling retailers.
In the 53 weeks ended 30 April 2023, the Mike-Ashely owned group reported a 96.6% rise in pre-tax profits to £660.7 million.
During the year, the group also made several acquisitions including Gieves and Hawkes, Amara Living and a raft of JD Sports’ premium brands. It also recently snapped up shares in electrical retailers Currys and AO World alongside fashion retailers Boohoo and Mulberry.
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According to the group, which owns Jack Wills and Flannels, without the acquisitions, sales would have only increased by 1.3%.
In the period, Sports Direct also saw a strong performance during the year, thanks to brand partnerships including Elite retailer Nike.
However, also in the period, 10 House of Fraser stores shut which impacted profits in the premium lifestyle division, but were offset by new openings for Flannels and a growth in online sales.
“In my first full year as chief executive, we have delivered a strong performance across the group,” CEO Michael Murray said.
“We were bold in setting our full year guidance twelve months ago, before the full impact of the cost-of-living crisis was clear, but our business has remained resilient, and we have met these expectations.
“We enter the new financial year in a strong position and are determined to unlock further growth, underpinned by our laser focus and acceleration of our elevation strategy.”
The company added that it expects profit to grow by at least 5% in the current financial year.
As a result, it predicts an adjusted pre-tax profit in the range of £500 million to £550 million, representing “strong underlying trading profit progression”.
