Frasers Group PLC (LSE:FRAS) said it is heading into the Christmas trading period with great momentum after strong trading at Sports Dircet and in its international businesses underpinned a strong first half.
“This strong trading momentum continued throughout the first half of FY24 and into the early recent weeks of the second half especially at Sports Direct,” said Michael Murray, chief executive.
“We are looking forward to our Christmas trading period and remain confident of achieving adjusted pre-tax profit in the range £500-£550 million,” he added.
In the 26 weeks ending 29 October, Mike Ashley’s diversified retail group reported a 4.4% increase in revenue to £2.77 billion up from £2.65 billion the year before, with pre-tax profit climbing 8% to £310.2 million from £287.2 million.
Margin improved to 43% from 42.7% while adjusted basic EPS jumped 18.3% to 53.7p from 45.4p.
Sales in the UK sports retail business edged 0.8% higher to £1.49 billion while International Retail sales leapt 13.2% to £645.8 million.
This was helped by a strong trading performance from Sports Direct, reflecting the continuing success of the elevation strategy and strengthening brand relationships, Frasers said.
Murray said: “"We have delivered a strong performance in the first half of the year, with great momentum as we head into the Christmas trading period.”
But he cautioned that progress in its Premium Lifestyle business are likely to remain subdued for the short to medium term in the face of a softer luxury market although he remained confident of long-term prospects.