Retail group Frasers has reported a growth in half year sales although its Premium Lifestyle segment saw revenues decline.
According to its unaudited half year results for the 26 weeks ended 26 October 2025, total group sales rose 5% to £2.5bn, driven by international revenue growth of 42.8% to £736.5m.
Adjusted pre-tax profit resulted at £290.9m, down by 2.8%. This was due to an £82.3m increase in impairments of tangible and intangible fixed assets and a £11.3m increase in interest costs that largely offset by a £33.8m gain from the disposal of the Coventry Arena and a £41.1m increase in premiums from strategic investments.
Within its Premium Lifestyle division, which includes Flannels, House of Fraser, Sofa.com and Amara.com, sales fell 3.7% to £444.5m from £461.4m. Gross margin increased from 38.6% to 42.7% with profit from trading up from £56.3m to £61.5m.
Michael Murray, Chief Executive of Frasers Group, said: “We’ve made a solid start to FY26 even though market conditions are tough, consumer confidence is very subdued and excess inventory continues to weigh on the industry, leading to increased promotional activity. While we remain cautious into the second half, our focus is unwavering as we confront these challenges head-on, and we are today re-iterating our FY26 APBT guidance of £550m to £600m.
“We are continuing to invest boldly in our Elevation Strategy-deepening brand partnerships, elevating our product mix, opening new Sports Direct stores internationally, and acquiring strategic properties to strengthen our portfolio. These steps reinforce our ambition and give us real confidence in the substantial long-term opportunities ahead for the Group.”
