Frasers Revenue Hits £5.33bn as Sports Direct Sales Fall 4.7%

Frasers Group has reported an 8.7% rise in annual revenue to £5.33 billion after overseas takeovers expanded its international business. The growth helped the owner of Sports Direct, Flannels and House of Fraser offset a 4.7% decline in UK sports retail sales.

The results for the 52 weeks to April 26, 2026, show a group growing through acquisitions while facing weak consumer confidence, excess retail stock and higher costs in Britain.

Frasers Group’s key results

• Group revenue: £5.33 billion, up 8.7%
• Reported pre-tax profit: £527.8 million, up 38.9%
• Adjusted pre-tax profit: £538 million, down 4%
• Retail trading profit: £912.5 million, up 22.1%
• Group gross margin: 48.4%, up from 46.8%
• Adjusted earnings per share: 83.3p, down 15.1%

Reported profit rose partly because substantial fair-value losses associated with strategic investments in the previous year were not repeated. The decline in adjusted profit provides a more cautious view after higher impairments and bank interest costs.

Frasers’ official full-year results also show net assets increasing from £1.99 billion to £2.45 billion.

Why Sports Direct UK sales fell

UK Sports revenue declined from £2.70 billion to £2.57 billion. The division includes Sports Direct stores and websites, GAME UK, Studio Retail sales, Frasers Fitness and other sports operations.

Frasers blamed subdued consumer confidence, difficult trading and surplus inventory across the retail industry. Pressure from wages, taxes and other expenses is affecting companies of different sizes, as seen in the wider cost pressures facing UK businesses in 2026.

Despite lower revenue, UK Sports trading profit increased 17.6% to £559.4 million. Its gross margin improved by 2.9 percentage points through better product access, a more profitable sales mix, cost controls and lower legal and regulatory provisions.

Store and concession numbers increased from 785 to 794. The results do not announce a widespread Sports Direct closure programme or immediate large-scale job losses.

Takeovers drive international growth

International retail revenue surged 59.2% from £1.01 billion to £1.60 billion. Much of the increase came from acquisitions rather than stronger sales across existing businesses.

Important additions included South African sporting-goods group Holdsport and Nordic sports retailer XXL. Frasers is now seeking savings by combining purchasing, logistics and other operations across its enlarged network.

The expansion reflects wider consolidation among consumer businesses, also seen in the proposed takeover of William Hill owner Evoke.

Flannels improves as premium sales decline

Premium Lifestyle revenue fell 6.9% to £975.7 million. The division includes Flannels, House of Fraser, Frasers department stores, Jack Wills, Cruise, Sofa.com and Gieves & Hawkes.

Trading profit declined by £9.8 million to £147.6 million as higher minimum-wage and employer National Insurance costs increased expenses.

Frasers nevertheless said Flannels had returned to sales growth. The division’s gross margin improved by 2.9 percentage points following changes to its products and inventory, while brands including SKIMS and Dior were added.

Frasers Plus gains more customers

Purchases made through the Frasers Plus credit and loyalty service rose from £195 million to £340 million. Active customers increased from 600,000 to 1.1 million, and the service accounted for 20.5% of UK online sales, up from 12%.

However, impairment losses on consumer credit receivables increased from £22.1 million to £28 million. Rapid credit growth can create additional revenue but also increases repayment risk when household finances are under pressure.

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Debt rises as more deals are pursued

Net debt increased by £321.4 million to £1.26 billion following acquisitions, property spending and strategic investments. Capital expenditure reached £651 million, while interest on bank loans and overdrafts increased to £113.1 million.

Frasers will not pay a final dividend for FY26. Its board said retaining cash would provide flexibility for investments and future growth.

The group has offered €38 per share for the Hugo Boss stock it does not already own, valuing the remaining stake at approximately €1.98 billion. Hugo Boss has advised shareholders to reject the proposal as financially inadequate.

Frasers has also pursued Australia’s Accent Group and reportedly joined the auction process for Harvey Nichols, showing that acquisitions remain central to its strategy despite higher debt.

What the FY27 warning means

Chief executive Michael Murray said the group’s “Elevation Strategy,” focused on better stores, products and brand relationships, continued to make progress.

However, he warned that tough trading, weak confidence and excess industry inventory continued into the start of FY27. Frasers must now show that international expansion and improved margins can offset falling UK revenue, higher borrowing costs and cautious household spending.

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