Frasers Group Shares Edge Higher But Analyst Says Results Look Softer Than Expected

Frasers Group (LON: FRAS) shares rose slightly higher in early Thursday trading after the retailer reported a “solid” first half, although analysts flagged that the numbers came in weaker than anticipated. 

The group posted a 5 percent increase in revenue to £2.58 billion for the 26 weeks to 26 October, driven largely by a 42.8 percent jump in international sales.

Adjusted profit before tax slipped 2.8 percent to £290.9 million, with the company citing an £82.3 million increase in impairments and higher interest costs. 

Retail profit from trading improved 12.2 percent to £411.4 million as gross margins rose 160 basis points, helped by a stronger mix in the core Sports Direct and Flannels businesses.

Chief executive Michael Murray said the group had delivered a “solid start” to FY26 despite subdued confidence and high inventory levels across the industry. 

He reiterated guidance for full-year adjusted profit before tax of £550 million to £600 million and highlighted continued investment in the company’s Elevation Strategy, including acquisitions in South Africa and the Nordics and the expansion of Sports Direct overseas.

The update also highlighted progress at Flannels, which returned to sales growth, and continued gains in the group’s credit offering, Frasers Plus, which now has 1.1 million active customers.

However, analysts at RBC Capital Markets said the figures were a bit softer than anticipated. They added that the company’s broader portfolio “should offer protection from pressures on any one area of consumer spending.”

Frasers warned that conditions remain challenging into the second half, but said its strong balance sheet and ongoing cost savings give it confidence in long-term growth prospects.