Frasers Group, the parent company of Sports Direct, House of Fraser, and Flannels, reported a jump in annual revenues driven by recent takeover deals, offsetting the impact of challenging high street conditions on its UK Sports Direct business. Group revenues rose 8.7% to £5.33 billion for the year ending April 26, compared with the previous year.
International growth fuels revenue surge
International revenues surged 59.2% to £1.6 billion, boosted by acquisitions such as Holdsport in South Africa and XXL in Norway. The group continues to pursue further deals, including a potential takeover of Hugo Boss, for which it offered approximately €1.98 billion (£1.73 billion) for the 74% it does not already own. It also made a bid for Australia's Accent Group last month and has reportedly entered the auction process to acquire Harvey Nichols.
UK sports retail struggles
In contrast, the UK sports retail division saw revenues fall 4.7% year-on-year to £2.57 billion. Chief Executive Michael Murray acknowledged the impact of weaker consumer confidence and tough trading conditions. He stated: “The elevation strategy is going from strength to strength, with positive momentum from brand partners and strong feedback from consumers validating our strategy... 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.”
Outlook amid sector pressures
Murray added that these pressures are affecting the entire sector, creating a prolonged and challenging environment, meaning the full potential of the group's progress has not yet been realized. Despite this, Frasers remains committed to its growth strategy, which includes expanding its luxury brands and pursuing strategic acquisitions.
