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Sports Direct owner Frasers Group PLC on Thursday said annual profit surged, despite the ‘well-chronicled challenges’ hitting the retail sector.
Shares in the Shirebrook, England-based retail group, which also owns House of Fraser, were up 21% to 908.30 pence each on Thursday morning in London.
In the year to April 24 group revenue was up 31% to £4.75 billion from £3.63 billion. It said that this was largely due to the reopening of its stores after Covid-19 restrictions were lifted in March last year.
Pretax profit jumped to £366.1 million from £8.5 million.
It swung to an adjusted pretax profit of £344.8 million from a loss of £8.5 million. Adjusted pretax profit excludes the effects of exceptional items.
During the financial year, founder Mike Ashley stepped down from his role as chief executive officer, paving the way for son-in-law Michael Murray to become the company's new boss.
Previously, Murray was head of elevation, meaning upgrading stores. Its strategy to modernise the business is evident throughout the year with the opening of its new flagship Sports Direct in Birmingham and the seven floor Flannels in Liverpool.
Looking ahead, Frasers said it is ‘well positioned for a successful year’ and it plans to continue to invest in supporting and growing its partnerships with other brands.
It added that it expects adjusted pretax profit to be between £450 million and £500 million in financial year 2023.
However, the company also said that it remains cautious of the wider macroeconomic environment and expects a ‘significant increase’ in general running costs. Notably, it anticipates challenges with its supply chain and the increased cost of living.
Chief Executive Officer Michael Murray said: ‘It's clear that our elevation strategy is working and we are building incredible momentum with new store openings, digital capabilities and deeper brand partnerships across all of our divisions.
‘We've got the right strategy, team and determination to keep driving our business from strength to strength,’ Murray added.
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