International revenue surged 42.8%, driven by the acquisitions of Holdsport in South Africa and Nordic retailer XXL, while group gross margin improved by 160 basis points to 47.3% thanks to a stronger product mix and continued growth at Sports Direct and Flannels. Retail profit from trading increased 12.2% to £411.4 million (US$542.88 million).
Adjusted profit before tax fell 2.8% to £290.9 million (US$383.87 million), reflecting higher impairment charges and increased interest costs, although reported profit before tax almost doubled to £412.1 million (US$543.80 million) due to gains from strategic investments.
During the period, Frasers completed the acquisitions of Holdsport and XXL, expanded into new international markets including Malta, Australia and the Middle East, and strengthened partnerships with brands including Nike, Adidas and Hugo Boss. The group also disposed of Coventry Arena and continued investing in UK retail property and flagship Sports Direct stores.
Looking ahead, Chief Executive Michael Murray said trading conditions remain difficult, with weak consumer confidence and heavy promotional activity across the retail sector. Despite this, the company reaffirmed its full-year adjusted profit before tax guidance of £550 million (US$725.77 million) to £600 million (US$791.75 million), citing continued confidence in its long-term Elevation Strategy and international expansion plans.
