Shares of U.K.-based retail company Frasers Group (GB:FRAS) rose yesterday after reporting solid profit growth in the half-year 2024 results. Pre-tax profits jumped 8% year-over-year to £310.2 million. Importantly, retail trading profit soared 25.7% to £364.7 million compared to the prior year period.
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The strong performance and continued trading momentum of Frasers’ Sports Direct chain have given the much-required push to the Group’s financials. Frasers is employing an “elevation strategy” through which the company is attracting more brands and acquiring minority stakes in rival retailers. The global outlook for retailers and clothing brands remains dim amid a challenging macro backdrop. Frasers’ growth strategy is working well for the British retail, sports, and intellectual property group.
More Details of First Half Results
Notably, Group revenue grew 4.4% year-over-year to £2.77 billion, boosted by a double-digit jump in International Retail, a 3% jump in Premium Lifestyle brands, and a modest 0.8% growth in UK Sports Retail.
For the six months ending October 29, 2023, Frasers posted a 12.6% rise in adjusted profit before tax (APBT). Plus, with the Christmas season around the corner, the second half-year performance is poised for continued momentum. This puts the FTSE-100 listed company on track to achieving an adjusted profit before tax between £500 million and £550 million for the full year 2024.
Is Frasers Group a Buy or Sell?
Based on two Buy ratings on TipRanks, FRAS stock has a Moderate Buy consensus rating. The Frasers Group share price target of 1085.00p implies 18.6% upside potential from current levels.
