Retail giant Frasers has revealed a jump in revenues on the back of recent takeover deals, helping the group to shrug off the impact of “tough” high street conditions on its Sports Direct business in the UK.
It comes as Mike Ashley’s retail vehicle continues to pursue a raft of further deals, including potential takeovers for Hugo Boss and Harvey Nichols.
The group, which also owns House of Fraser and Flannels, reported that group revenues jumped by 8.7% to £5.33 billion in the year to April 26, compared with a year earlier.
This was supported by rapid growth in its international retail arm, on the back of acquisitions last year.
Sports Direct and House of Fraser majority owner Mike Ashley (Yui Mok/PA)PA ArchiveInternational revenues surged by 59.2% to £1.6 billion, amid boosts from takeover deals for brands including Holdsport in South Africa and XXL in Norway.
Frasers is continuing to seek growth through takeovers, having offered to pay around 1.98 billion euro (£1.73 billion) for the 74% of the business it does not already own.
It also made a similar bid to take control of Australia’s Accent Group last month, and has reportedly entered the auction process to buy the Harvey Nichols department store business in recent days.
Meanwhile, its UK sports retail division saw revenues fall by 4.7% year-on-year to £2.57 billion.
Bosses said the group’s growth strategy, which has seen it grow its luxury brands and snap up competitors, has been positive but highlighted weaker consumer confidence.
Michael Murray, chief executive of Frasers, said: “The elevation strategy is going from strength to strength, with positive momentum from brand partners and strong feedback from consumers validating our strategy and giving us the confidence to continue to execute with ambition and conviction.
“However, we continued to feel the impact of tough trading conditions, subdued consumer confidence and industry-wide excess inventory levels through the second half and into the start of full-year 2027.
“These pressures are weighing on the entire sector, creating a prolonged and challenging environment, meaning the full potential of this progress has not yet been realised.”