Frasers Group, a leading UK-based retail conglomerate, has reported a 4.4 per cent increase in retail revenue for the first half of fiscal 2024 (H1 FY24), reaching £2,769.6 million. This growth is primarily attributed to the impact of businesses acquired in the second half of fiscal 2023 and a strong underlying performance from Sports Direct. Excluding the effect of acquisitions, disposals, and currency fluctuations, the revenue saw a more modest increase of 0.8 per cent.

The group's gross margin has improved significantly, rising to 43 per cent from 42.3 per cent in the previous period, the company said in a press release.

Breaking down the performance by segments, the UK sports division, accounting for 53.6 per cent of the total group revenue, experienced a revenue increase of 0.8 per cent. This was mainly due to Sports Direct's performance. The gross profit in this segment increased by £76.7 million, and the gross margin saw a substantial boost of 490 basis points, reaching 44.4 per cent.

In the premium lifestyle segment, which comprises 19.9 per cent of the total group revenue, there was a 3.1 per cent increase in revenue. However, the segment's profit from trading decreased by £35.1 million, impacted by the clearance of surplus inventory from businesses acquired from JD Sports Fashion and the continued closure of legacy House of Fraser stores.

The international retail segment, representing 23.3 per cent of the total group revenue, showed growth, with revenue increasing by 13.2 per cent. The segment's profit from trading also rose by £4.1 million (5.5 per cent) year-on-year, indicating a strong global presence.

Frasers Group also reported a notable increase in its basic earnings per share (EPS), which grew by 6.3p to 53.0p year-on-year.

"We have delivered a strong performance in the first half of the year, with great momentum as we head into the Christmas trading period. The elevation strategy continues to drive strong trading performance across the business with good growth in Sports Direct supported by our brand partners,” said Michael Murray, chief executive of Frasers Group.

Fibre2Fashion News Desk (DP)

Disclaimer - All News/Articles items are subject to copyright and no article either in full or part may be reproduced in any form without permission from Fibre2Fashion Pvt. Ltd.