UK's Frasers Group FY26 adjusted pretax profit falls 4%, misses estimates
UK's Frasers Group FY26 adjusted pretax profit falls 4%, misses estimates
Overview
UK retail and property group's FY26 revenue rose 8.7% yr/yr, driven by international growth
Adjusted pretax profit fell 4% and missed analyst expectations due to higher impairments
Adjusted EPS declined 15.1% yr/yr, reflecting lower APBT and higher tax rate
Outlook
Frasers Group declines to provide FY27 financial guidance due to ongoing takeover offers
Company says tough trading conditions and subdued consumer confidence continue into FY27
Frasers Group plans continued international expansion and investment in growth opportunities
Result Drivers
INTERNATIONAL EXPANSION - Revenue growth was driven by acquisitions of Holdsport in South Africa and XXL in the Nordics, as well as new store openings in Malta, Australia and the Middle East
GROSS MARGIN IMPROVEMENT - Group and retail gross margin rose due to improved product access and a shift in sales mix toward higher-margin Sports Direct and Flannels businesses
IMPAIRMENTS AND COSTS - Adjusted pretax profit declined due to a £259.5m increase in impairments of tangible and intangible fixed assets and higher net bank interest costs
Company press release: ID:nRSP5356Ma
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
FY Adjusted Pretax Profit | Miss | GBP 538 mln | GBP 564.21 mln (6 Analysts) |
FY EBIT |
| GBP 386.30 mln |
|
FY Pretax Profit |
| GBP 527.80 mln |
|
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 4 "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the miscellaneous specialty retailers peer group is "buy."
Wall Street's median 12-month price target for Frasers Group PLC is GBp785.00, about 2.9% above its July 15 closing price of GBp763.00
The stock recently traded at 7 times the next 12-month earnings vs. a P/E of 6 three months ago
For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)