UK's Frasers first-half profit up 62% on strong reopening after lockdown (updated)
09/12/2021 07:47
(Adds detail)
LONDON, Dec 9 (Reuters) - British sportswear and fashion
group Frasers FRAS.L on Thursday reported a 61.7% rise in
first-half core earnings, driven by the strong reopening of
stores after COVID lockdowns, the opening of new Flannels stores
and online growth.
Formerly called Sports Direct and controlled by founder Mike
Ashley, the group reported an adjusted pretax profit of 186.8
million pounds ($246.6 million) for the six months to Oct. 24,
up from 115.5 million a year earlier.
Group revenue rose 23.6% to 2.34 billion pounds.
Frasers said it remained cautious on the outlook, given
macroeconomic headwinds on the horizon in the form of cost
increases, supply chain issues and potential squeezes on
consumer spending power.
There is also still the risk that measures to restrict the
spread of COVID-19 could adversely affect the outlook with
restrictions returning, including lockdowns in Europe.
"Notwithstanding the above risks...we do believe the group
can achieve an adjusted profit before tax of between 300 million
pounds to 350 million pounds for the period ended 24 April 2022
on the proviso there are no substantial lockdowns imposed in the
UK, particularly over the important Christmas period," it said.
Shares in Frasers, up 57% this year, closed Wednesday at 707
pence, valuing the business at 3.56 billion pounds.
Ashley is set to step down as chief executive in May and be
succeeded by Michael Murray, his daughter's partner and Frasers'
current "head of elevation". urn:newsml:reuters.com:*:nL8N2PC1Y1
Ashley, who owns about 66% of the group's equity, will
remain on the board as an executive director.
($1 = 0.7574 pounds)
(Reporting by James Davey, editing by Paul Sandle and Jason
Neely)
((james.davey@thomsonreuters.com))