UK's Frasers says market conditions tough but keeps profit outlook

LONDON, Dec 4 (Reuters) - Frasers, the British sportswear and fashion retailer that is majority owned by Mike Ashley, reaffirmed its full-year profit forecast despite what it called tough market conditions.

Profit for the six months to October 26 fell by 2.8% to 291 million pounds ($388 million) said Frasers, which owns Flannels and Sports Direct, and the group added that while it was cautious about the second-half, it was on track.

"We've made a solid start to full-year 2026 even though market conditions are tough, consumer confidence is very subdued and excess inventory continues to weigh on the industry, leading to increased promotional activity," CEO Michael Murray said on Thursday.

Official data published last month showed British retail sales tumbled in October, while a closely watched gauge of household sentiment fell this month, adding to signs of waning consumer spending ahead of last week's tax raising government budget.

With uncertainty regarding the budget now behind them, retailers are hoping that consumer confidence rebounds in the Christmas trading period.

For the full-year, Frasers, which has 1,500 UK stores, expects adjusted pretax profit of 550 million pounds to 600 million pounds, which compares with the 560 million pounds it made last year, helped by plans to offset higher costs with efficiencies and synergies.

($1 = 0.7500 pounds)

(Reporting by James Davey; editing by Sarah Youngand Paul Sandle)