Sports Direct owner posts higher revenue but lower adjusted profit, and withholds 2027 guidance, citing its live takeover bids for Hugo Boss and Accent Group.
Frasers Group (LSE:FRAS) shares fell sharply on Thursday after the retailer reported full year results that showed rising revenue but a decline in adjusted profit, with the group declining to give guidance for the year ahead.
Shares in the FTSE 250 retailer were trading at around 724p on Thursday morning, down 5.1% from Wednesday’s close of 763p, after earlier falling as low as 715.8p. The stock remains well within its 52-week range of 598p to 819.5p, having touched the top of that range as recently as mid-June.
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Revenue up, adjusted profit down
Frasers said revenue for the 52 weeks to 26 April 2026 rose 8.7% to £5,325.9m, driven largely by a 59.2% jump in international revenue following acquisitions in South Africa and the Nordics. Reported pre-tax profit climbed 38.9% to £527.8m, mainly reflecting the non-repeat of prior-year fair value losses on derivatives tied to its stake in Hugo Boss.
But adjusted pre-tax profit, the company’s preferred measure of underlying trading, fell 4.0% to £538.0m, and adjusted earnings per share dropped 15.1% to 83.3p, as higher impairments and finance costs outweighed trading gains. The board again declined to pay a final dividend, marking the second straight year Frasers has paid nothing to shareholders, according to the company’s own announcement. Frasers also said it would not provide financial guidance for the new financial year, citing uncertainty around its ongoing takeover offers for Hugo Boss and Australia’s Accent Group.
The results cap a year in which Frasers built stakes in Hugo Boss and Puma and launched formal takeover bids for both Hugo Boss and Accent Group, both of which have so far rejected the approaches as inadequate. Chief executive Michael Murray said the group’s “Elevation Strategy is going from strength-to-strength,” but that it “continued to feel the impact of tough trading conditions, subdued consumer confidence and industry-wide excess inventory levels” through the second half of the year and into the new one.
Wall Street’s average price target on the stock stands at 817.5p.
Attention now turns to how Hugo Boss and Accent Group respond to Frasers’ offers, both due to be decided in the coming weeks, and whether Frasers sweetens either bid. Until that uncertainty clears, the market looks set to keep pricing in the risk that dealmaking, not the underlying retail business, will decide where Frasers shares head next.