The Frasers Group PLC (LON: FRAS) share price increased by 3.24% after releasing its financial results for the full year to 30 April 2023. The company reported strong performance across the group led by UK Sports Retail, which generated revenues worth £3.08 billion, marking a 16.7% improvement from the 2022 figure of £2.64 billion.
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The group’s revenues surged 15.8% to £5.565 billion from last year’s £4.805 billion sales. The higher revenues were driven by gains across all its business divisions, including premium lifestyle, international retail, wholesale, and licensing. The company’s gross margins shrunk by 0.90% to 42.6% from 2022’s 43.5%.
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YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY
Frasers reported profits before taxes of £478.1 million, marking a 40.7% improvement from last year’s £339.8 million profit. The group also expects to generate pretax profits worth £500 million to £550 million during the 12 months to the end of April 2024.
Investors cheered the results, which confirmed that the company’s business strategy was working. The Nike and Sports Direct partnership drove higher sales and profits and elevated consumer spending despite the tough economic environment.
The company attributed the robust sales witnessed across all its business units to the strong employment figures in the United Kingdom. The company said that consumers tend to spend more when they have jobs.
Frasers has also bought shares in other companies this year as UK stocks fell. The company has acquired stakes in electrical retailers Currys and AO World and online fashion group Boohoo.
Michael Murray, Chief Executive of Frasers Group: “In my first full year as Chief Executive, we have delivered a strong performance across the Group. We were bold in setting our full-year guidance twelve months ago before the full impact of the cost-of-living crisis was clear, but our business has remained resilient, and we have met these expectations.”
“The Elevation Strategy is continuing to drive results across every segment, and I want to thank the entire company for all their hard work in delivering our vision for Frasers Group. It has been a particularly significant year for Sports Retail, demonstrating that elevating Sports Direct was the right strategy.”
*This is not investment advice.
Frasers' share price.
The Frasers Group share price increased 3.24% to trade at 800.65p, from Wednesday’s closing price of 775.50p.
YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY.