Frasers Group UK Retail Profit Up 2.8% Despite Revenue Drop

Frasers Group reported a 2.8% increase in adjusted profit before tax to £560.2 million for the fiscal year ended April 27, 2025, despite a 7.4% decline in total revenue to £4.9 billion, primarily due to planned reductions in lower-margin businesses and luxury market challenges. The company implemented significant cost-saving measures, including £127.2 million from reducing low-margin sales and £224.7 million through improved warehouse efficiency, which helped offset revenue declines. CEO Michael Murray highlighted progress in the Elevation Strategy, including accelerated international expansion and strengthened partnerships with global brands like Nike, Adidas, and Hugo Boss. Frasers also continues to leverage artificial intelligence and sustain strong gross margins to mitigate ongoing cost pressures related to last year’s UK Budget tax increases. The retailer remains optimistic about fiscal year 2026, expecting adjusted pretax profits between £550 million and £600 million, supported by improving consumer confidence and encouraging recent sales trends. Additionally, the company has expanded its market presence and increased stakes in key companies, though it faced some setbacks in acquisitions and board influence attempts.