Frasers Group holds back guidance as takeover bids cloud outlook and profits slip

Frasers Group PLC (LSE:FRAS) has declined to give financial guidance for the year ahead, saying its takeover offers for Hugo Boss and Accent Group could lead to a variety of outcomes depending on acceptances. The retailer recently launched a £1.7 billion bid for Hugo Boss, the German fashion house in which it holds a 26.1% stake, and an on-market offer of £166 million for Australian footwear retailer Accent Group.

The board said it would review the guidance position at the half-year. Full-year results revealed the Sports Direct and Flannels owner said adjusted profit before tax fell 4% to £538 million in the 52 weeks to 26 April 2026, weighed down by £259.5 million of impairments to tangible and intangible assets and higher net bank interest costs.

Chief executive Michael Murray said the group continued to feel the impact of tough trading conditions, subdued consumer confidence and industry-wide excess inventory through the second half and into the start of the new financial year. He said these pressures were weighing on the entire sector and creating a prolonged and challenging environment, meaning the full potential of the group's progress had not yet been realised.

Revenue rose 8.7% to £5,325.9 million, driven by international growth of 59.2% following the acquisitions of Holdsport in South Africa and XXL in the Nordics. Reported profit before tax jumped 38.9% to £527.8 million, largely because fair value losses on equity derivatives linked to strategic investments did not repeat. Retail profit from trading climbed 22.1% to £912.5 million, helped by underlying growth in UK Sports, provision releases and international acquisitions. Group gross margin improve...