The Gulf Time Newspaper One of the finest business newspapers in the UAE brought to you by our professional writers and editors.
Bloomberg
Shares in Frasers Group Plc leaped after the owner of Sports Direct and House of Fraser reported bumper profits and said it expects to grow further this year in the first financial results since Michael Murray took over as chief executive.
Frasers forecast profit of at least £450 million ($538 million) in the financial year to April, building on the record profit of £345 million last year, according to a statement. It comes after a loss of £40 million the previous year, when
sales were still affected by the coronavirus pandemic.
Shares rose as much as 25% in London.
Murray, 32, took over as CEO on May 1, succeeding his father-in-law Mike Ashley, who remains as an executive director at the company he founded in 1982. Murray married Ashley’s daughter, Anna.
Since joining, Murray has focused on upgrading stores, particularly within the main Sports Direct brand which once was best known for a pile-it-high, sell-it-cheap approach to retailing. Revenue particularly increased for Frasers’ premium brands with new openings of Flannels stores, including a site in Liverpool.
Murray said he’s not yet seeing consumers opt more for Sports Direct own brands as they battle with the higher cost of living. The company hasn’t lost any of its acquisitive flair since Ashley stepped back. Last month Frasers bought online brand Missguided in a £20 million deal, raised its stake in German fashion retailer Hugo Boss AG and acquired a 28.7% stake in Australian fashion marketplace MySale Plc.