Frasers Group (FRAS) H1 2025 earnings summary

Executive summary

• Group revenue declined 8.3% year-over-year to £2,540.1m for FY25 H1, with adjusted profit before tax down 1.5% to £299.2m.

• Gross margin improved by 40 bps to 43.4% at group level, and net assets increased to £2,101.7m.

• Achieved £74.7m in synergies and cost savings, reduced stockholding by 16.5%, and acquired 7 assets for £138m.

• 272k new Frasers Plus customers added, with digital sales penetration rising to 13.7%.

• Delivered progress on Elevation Strategy, focusing on best brands, international expansion, and cost synergies.

Financial highlights

• Adjusted profit before tax (APBT) down 1.5% to £299.2m; reported PBT down 33.2% to £207.2m.

• Group revenue fell 8.3% to £2,540.1m; retail revenue down 8.4% to £2,456.4m.

• Group and retail gross margin both up 40 bps year-over-year to 43.4% and 42.2%.

• Adjusted basic EPS decreased 5% to 51.0p; cash inflow from operating activities before working capital was £411.4m.

• Net assets increased to £2,101.7m from £1,873.0m at year-end.

Outlook and guidance

• FY25 APBT expected in the range of £550m to £600m, reflecting tougher trading and weaker consumer confidence.

• At least £50m of incremental costs anticipated in FY26 due to the recent Budget, with mitigation efforts underway.

• Multi-year, sustainable profitable growth and international expansion remain strategic priorities.