What: Frasers Group's half-year results to October show a mix of sales and profit increases and decreases, indicating resilience in the challenging retail environment.

Why it is important: Frasers Group continued to open new elevated stores and expressed ambitions to be the leading sports retailer in EMEA.

Retail gross profit increased to GBP 1.12 billion, and group gross profit reached GBP 1.19 billion, with a margin rise to 43%. Retail profit from trading surged by 25.7% to GBP 364.7 million, primarily due to Sports Direct's success. However, group profit from trading fell by 6% to GBP 412.5 million.

Operating profit and adjusted profit before tax also saw increases, despite challenges like lower profits from property and subsidiary disposals, foreign exchange fluctuations, and a higher effective tax rate. UK Sports Retail and International Retail segments experienced revenue growth, while Premium Lifestyle revenue was affected by House of Fraser store closures and a softer luxury market.

CEO Michael Murray highlighted the strong performance and momentum heading into the Christmas period, driven by the elevation strategy and partnerships. He acknowledged the short-to-medium-term challenges in the luxury market but expressed confidence in the company's unique proposition and continued investment. Frasers Group remains optimistic about achieving its full-year adjusted profit before tax target of GBP 500 million to GBP 550 million.

Frasers Group is one of the winners in UK retail