Frasers share rose as Sports Direct leads profit growth

Shares in Frasers Group (LSE:FRAS) advanced nearly 10% on Thursday after its Sports Direct business helped drive improved profits for the retailer’s full year.

Whilst Mike Ashley’s retail conglomerate saw a 0.9% decline in revenue, to £5.54 billion, amidst a slowdown in the luxury end of its market, adjusted profit for the year increased to £544.8 million from £481.8 million.

Looking into the new financial year, Frasers sees its profits improving substantially with a new guidance range of £575 million to £625 million for the 2025 financial year.

Frasers, in its investor communications, highlighted that it is continuing to expand its “retail ecosystem and establish new brand partnerships”.

Meanwhile, chief executive Michael Murray talked up the group’s infrastructure.

“We invested in group-wide operational efficiencies in warehouse automation and digital infrastructure, which we expect to yield a tangible impact as early as FY25,” Murray said.

“And we generated new growth opportunities with the rollout of Frasers Plus, including recently signing our first third party partner in THG.”

Murray said: “We have built a lot of momentum this year and are entering the new financial year with many exciting growth opportunities ahead of us, which we will continue to invest in for the long-term benefit of the group."  In London, Frasers shares were up 73.5p or 8.95% changing hands at 898.5p.