The profit before tax (PBT) in FY23 more than doubled from the previous year, reaching £660.7 million from FY22's £335.6 million. Even when adjusted, the PBT rose to £478.1 million from £339.8 million in FY22, the company said in a press release.
However, the group's gross margin saw a slight decline from 43.5 per cent to 42.6 per cent. The drop is partly offset by improvements in Sports Direct's product mix, which resulted from strengthening brand relationships, but was negatively impacted by the closures of House of Fraser stores, brand consolidation, and a strong post-COVID-19 full-price trading comparative.
Diving into the company’s segments, the UK sports retail experienced a 16.7 per cent increase in revenue, largely due to the full-year impact of acquiring Frasers Group Financial Services (formerly Studio Retail Limited). Even after excluding acquisitions and the extra week, the revenue still showed a slight 0.8 per cent increase. Gross profit in this segment jumped by £244.9 million, and gross margin improved by 180 basis points to 44.9 per cent, reflecting an improved product mix in the core Sports Direct business.
On the other hand, premium lifestyle segment’s revenue rose by 14.8 per cent, with new Flannels store openings and growth in online sales offsetting the impact of planned House of Fraser store closures. Excluding acquisitions and the extra week, the revenue still saw a 5.7 per cent increase.
Meanwhile, international retail revenue grew by 15.2 per cent, largely due to the acquisition of Sportmaster and an increase in the Malaysian business, but was partly offset by the disposal of the US retail businesses. Excluding acquisitions, disposals, and the extra week, revenue decreased by 2.4 per cent on a currency neutral basis.
Frasers Group reported a basic EPS of 106.1p, a 53.2p increase YoY.
"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,” said Michael Murray, chief executive of Frasers Group.
Fibre2Fashion News Desk (DP)