Finance
UK retailer Frasers sees tough market conditions but keeps profit outlook
Published by Global Banking and Finance Review
Posted on December 4, 2025
2 min readLast updated: January 20, 2026
Global Banking and Finance Review
Company
Published by Global Banking and Finance Review
Posted on December 4, 2025
2 min readLast updated: January 20, 2026
Frasers sees a 2.8% profit drop but maintains its full-year forecast, citing successful strategies amid tough market conditions.
By James Davey
LONDON, Dec 4 (Reuters) - Frasers, the British sportswear and fashion retailer, said market conditions were tough, consumer confidence very subdued and excess inventory was weighing on the industry as the company reported a 2.8% fall in first-half profit.
The FTSE 100 group, majority owned by Mike Ashley, did, however, reaffirm its full-year profit forecast, saying its strategy was working.
Frasers' shares were down 2% on Thursday, paring 2025 gains to 16.4%.
The group, whose brands include Sports Direct, House of Fraser and Flannels, said while trading had improved compared with last year's government budget-affected period, it was still weaker than the same period in its 2023/2024 year, with excess inventory in the sector leading to increased promotional activity.
DWINDLING CONSUMER SPENDING AHEAD OF NOVEMBER BUDGET
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 finance minister Rachel Reeves tax- raising budget last week.
Frasers' chief financial officer Chris Wootton said constant speculation of various government measures in the run-up to the budget was "incredibly annoying".
"It would be a lot more helpful if it wasn't so chaotic," he told Reuters.
Frasers made adjusted profit before tax of 290.9 million pounds ($388.1 million) in its first half to October 26, on revenue up 5.0% to 2.58 billion pounds.
It said Sports Direct performed well, while margins strengthened in the premium and luxury division, particularly at Flannels.
The group is pursuing what it calls an "elevation strategy", focused on strengthening relationships with brands including Nike and Adidas, development of its own brand business and investment in flagship stores, automation, online and expansion overseas.
Frasers has also built significant stakes in a raft of other retailers, including Hugo Boss, AO World, Mulberry, ASOS and Debenhams.
For the full-year, Frasers, which has more than 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.
($1 = 0.7496 pounds)
(Reporting by James Davey; editing by Sarah Young, Paul Sandle and Jane Merriman)
Consumer confidence refers to the degree of optimism that consumers feel about the overall state of the economy and their personal financial situation. It influences their spending and saving behaviors.
Excess inventory occurs when a company has more products in stock than it can sell within a reasonable timeframe. This can lead to increased costs and the need for promotional discounts.
Adjusted profit before tax is a measure of a company's profitability that excludes certain non-recurring items and taxes, providing a clearer view of its operational performance.
An elevation strategy is a business approach focused on enhancing brand relationships, improving product offerings, and investing in key areas such as flagship stores and online presence to drive growth.
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