(Bloomberg) — Frasers Group Plc stuck to its profit goal for the year and said it expects lucrative growth in 2025 and beyond, as the retail empire majority owned by tycoon Mike Ashley weathers Britain’s cost-of-living crisis.
Frasers, which owns Sports Direct and House of Fraser, reiterated its goal of adjusted profit before tax at a record £500 million ($628 million) to £550 million for this financial year. The company said there’s been strong trading momentum in the first half and that has continued into the early weeks of the second half, especially at Sports Direct.
Founded by entrepreneur Ashley in the 1980s, Frasers has been run by his son-in-law Chief Executive Officer Michael Murray since last year. Murray is pursuing a strategy of upgrading stores to attract the biggest brands while also acquiring stakes in rival retailers and buying smaller distressed brands.
Frasers has bought shares in a range of companies including online fast-fashion outlets Asos Plc and Boohoo Group Plc and electronics retailers Currys Plc and AO World Plc. The company has pledged to pursue its latest acquisition, of German sports retailer SportSheck, even after the business filed for insolvency last week due to the knock-on impact of the insolvency of its parent, real estate group Signa Holding GmbH.
