Mike Ashley's Frasers Group PLC (LSE:FRAS) has posted results showing a small fall in half-year profits and a lowered outlook for the full year, blaming weaker consumer confidence and tougher recent trading conditions since the Budget.
The Sports Direct owner reported adjusted profit before tax came in at £299.20 million for the 26 weeks ending 27 October, down 1.5% versus a year ago, as revenues fell 8.3% to £2.54 billion.
Even though the retailer achieved £74.70 million in cost savings and synergies from automation and integration of acquisitions, retail gross margins improved only marginally and other operating costs increased.
The period saw further evolution of the 'elevation strategy' of CEO Michael Murray, son-in-law of Ashley, including strengthening global strategic brand partnerships, and reducing inventory by £298.80 million and a step up in international ambitions.
But due to uncertainty around consumer confidence, full-year adjusted PBT is now seen in the range of £550 million to £600 million, versus previous guidance of £575-625 million and an analyst consensus forecast of £600 million.
Furthermore, the group flagged "at least £50 million of incremental costs" going into the 2026 financial year as a result of the recent Budget, though it aims to offset some of this.