20th Mar 2020 08:46
(Alliance News) - Retailer Frasers Group PLC on Friday warned it will miss annual earnings guidance range due to a sharp drop in customer footfall resulting from the Covid-19 pandemic.
Shares were up 0.4% at 227.20 pence each in London.
Frasers, which joined a long list of UK retailers issuing profit warnings, does not expect to achieve its previous guidance of growth of 5% to 15% in earnings before interest, tax, depreciation and amortisation previously provided for the year to April 26. The guidance includes House of Fraser but exclused pre-IFRS 16 accounting rule adjustments.
In financial 2019, Frasers recorded underlying Ebitda of GBP287.8 million.
The FTSE 250-listed clothing and sportswear company, which was formerly called Sports Direct International, also has decided against providing a formal guidance for financial 2020 due to the "ongoing uncertainty".
It said it expects the health crisis to cause a "significant disruption to its business, including reducing customer footfall".
Frasers Group's year-to-date performance had been in-line with expectations prior to the Covid-19 situation worsening, it said.
By Tapan Panchal; tapanpanchal@alliancenews.com
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