In the key news on UK stocks, shares of FTSE 100-listed Frasers Group PLC (GB:FRAS) surged over 9% after the company’s profits grew by 13.1% year-over-year to £544.8 million in FY24. The company’s CEO, Michael Murray, called FY24 a “break-out year” for the company as profits were close to the upper end of its guidance range of £500 million to £550 million.
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Frasers Group, founded by billionaire Michael Ashley, is a retail company that offers a wide range of clothing, sports, and lifestyle products. The company owns brands like Sports Direct, House of Fraser, Flannels, Slazenger, and many more under its portfolio.
Highlights from Frasers Group’s FY24 Results
Frasers Group posted a revenue of £5.5 billion in FY24, marking a slight year-over-year decline of 0.9%. Among its segments, International Retail revenues increased by 3% to £1.3 billion. However, UK Sports Retail declined by over 3%, while Premium Lifestyle sales dropped by more than 1%.
Additionally, the company’s operating profits declined by about 3% to £520.6 million, while pre-tax profits from continuing operations dropped over 20% to £507 million, impacted by a reduction in foreign exchange gains. Moving forward, the company expects its adjusted pre-tax profits to be between £575 million and £625 million in FY25.
Overall, Frasers Group attributed its growth to its Elevation Strategy, which focuses on profits and robust brand partnerships, and the launch of its new financial services platform, Frasers Plus. The company stated that the initial performance of Frasers Plus is highly promising. It holds a long-term goal of achieving sales exceeding £1 billion and engaging more than 2 million active Frasers Plus customers.
Recently, Frasers Group announced its partnership with UK-based e-commerce company THG Group PLC (GB:THG) to further enhance its premium brand portfolio. As part of this deal, THG integrated Frasers Plus into its retail platform, marking its first external partnership.
Is Fraser Group a Good Buy?
As per the consensus among analysts on TipRanks, FRAS stock has been assigned a Moderate Buy rating based on one Buy recommendation from Deutsche Numis. The Frasers’ share price target is 1,000p, which is 12.7% above the current level.
It is important to note that this rating was assigned before the results and may change accordingly.
