Tough Market Conditions Impact Frasers Group's Half-Year Retail Sales Despite Profit Growth
Frasers Group reported a 5.8% decline in UK sports division sales to £1.3bn for the six months ending 26 October 2025, despite growth at its main Sports Direct chain. The decline was primarily due to planned reductions at Game outlets and its Studio Retail online arm.
Overall, the group's total sales rose by 5% to £2.6bn during the half-year. Pre-tax profit nearly doubled to £412m, while operating profit increased by 18% to £219.8m, helped by a higher valuation of its stake in Hugo Boss.
The group continued to close underperforming stores, including additional House of Fraser and Jack Wills locations, as well as outlets tied to brands acquired from JD Sports in 2022 such as Pretty Green and Tessuti.
Market conditions were described as tough, with subdued consumer confidence and heavy promotional activity driven by excess inventory weighing on the retail sector.
Frasers Group, controlled by Mike Ashley, owns Sports Direct, Flannels, House of Fraser, Jack Wills, and other brands, along with shopping centres and expanding international exposure.
Despite a cautious outlook for the second half of the financial year, the group expects full-year profit to reach up to £600m. The revaluation of its Hugo Boss investment contributed significantly to the profit uplift.
