9th Dec 2021 10:11
(Alliance News) - Frasers Group PLC on Thursday reported a rise in profit in the first half but cautioned its trading may take a hit from the new lockdowns across Europe and supply chain problems.
In the 26 weeks to October 24, the retailer - which owns Flannels, House of Frasers and Sports Direct - recorded pretax profit of GBP186.0 million, up 75% from GBP106.1 million a year before.
Interim revenue surged 24% to GBP2.34 billion from GBP1.89 billion. UK Sports Retail advanced 28% to GBP1.37 billion from GBP1.07 billion, while Premium Lifestyle revenue was up 34% to GBP427.9 million from GBP320.4 million. European Retail revenue grew 14% to GBP399.8 million from GBP352.0 million.
UK Sports Retail includes Sports Direct, USC, the firm's gyms, Evans Cycles and GAME UK stores. The Premium Lifestyle business holds Flannels, Cruise, van mildert, House of Fraser and Jack Wills.
"Both our bricks and mortar and online businesses have continued to perform well since reopening from the last lockdown in the UK in March 2021," Chair David Daly ​said.
Daly, however, said Frasers is wary of the "shadow of uncertainty" cast by the ongoing pandemic, including lockdowns returning to parts of Europe and with the emergence of new variants.
Daly added: "There are also supply chain risks which to date we have proven resilient to but which must be factored into our future forecasting given these could continue for some time. On top of this there are the well-publicised macroeconomic factors contributing to a likely cost of living squeeze which could impinge on consumers spending plans heading into the new year."
Looking ahead, Frasers is guiding for adjusted pretax profit for the year ending April 24 between GBP300 million and GBP350 million, assuming there is no "substantial" lockdowns in the UK over the important Christmas period.
Frasers recorded adjusted pretax profit of GBP186.8 million in the first half. In the 52 weeks to April 25, 2021, the firm recorded an adjusted pretax loss of GBP53.7 million.
Frasers shares were up 1.5% at 717.50 pence early Thursday.
By Paul McGowan; [email protected]
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