High street retail giant Frasers Group has reported a rise in sales for the first half of its financial year, pointing to a recovery in the luxury market and strong international expansion as key drivers for growth.
Solid Performance Amid Sector Headwinds
The owner of Sports Direct and Flannels announced that total revenues reached £2.6 billion for the six months to 26 October 2025. This represents a 5% increase compared to the same period the previous year.
Chief Executive Michael Murray stated the group had made a "solid start" to the 2026 financial year, even as he acknowledged that market conditions remain "tough" and consumer confidence is "very subdued". The wider retail sector continues to grapple with excess stock, leading to heightened promotional activity across the industry.
Luxury 'Green Shoots' and International Surge
A significant highlight was the return to growth for its premium luxury division, which includes the fashion brand Flannels. The group noted "green shoots" in the luxury segment, which had weakened in prior years. Sales in this division grew by 3.7% year-on-year.
Furthermore, international performance was exceptionally strong, with sales soaring by nearly 43%. This dramatic increase was fuelled by strategic acquisitions, including Holdsport in South Africa and XXL in the Nordics.
The company also highlighted the success of its Sports Direct brand, which recently opened its largest flagship store in Liverpool during October.
Profit Pressures and Cautious Outlook
Despite the revenue growth, Frasers Group's adjusted pre-tax profit for the half-year was £291 million, down approximately 3% on the previous year. The retailer cited a challenging consumer environment and the impact of last year's autumn budget, which it said had driven up costs by around £50 million.
However, the group managed to achieve cost savings of about £10 million in the period, despite facing higher bills for taxes and staff wages. Not all brands under its umbrella performed well; Jack Wills and House of Fraser experienced declining sales, partly due to store closures.
Looking ahead, Frasers Group remains cautious for the second half of the financial year but reiterated its full-year guidance. The company still expects to deliver an adjusted pre-tax profit of between £550 million and £600 million.
