What's happened
Frasers Group has revised its profit forecast downwards due to weaker consumer confidence and a slump in sales. The company now expects adjusted pre-tax profits between £550 million and £600 million for the year, down from previous estimates of £575 million to £625 million.
Why it matters
What the papers say
According to The Guardian, Frasers Group's CEO Michael Murray stated, 'The first half of this year has been another period of progress for the group,' despite the challenges faced. The Independent echoed this sentiment, noting the company's efforts to 'right-size' unprofitable parts of the business, which have contributed to the revenue decline. Both sources highlight the impact of reduced consumer confidence and increased operational costs stemming from recent budget changes.
How we got here
Frasers Group, founded by Mike Ashley, has faced declining sales and profits in recent months, prompting a reassessment of its financial outlook. The company has been restructuring its operations and managing costs amid challenging trading conditions.
Common question
-
What are the key trends for Cyber Monday 2024 amid inflation?
Cyber Monday 2024 is shaping up to be a record-breaking day for online shopping, with consumers expected to spend $13.2 billion. However, inflation is influencing how people shop and what they buy. This page explores the key trends, consumer behavior changes, and strategies retailers are using to navigate this complex landscape.
More on these topics
-
Frasers Group plc, formerly Sports Direct International plc, is a British retail group. Established in 1982 by Mike Ashley, the company is the United Kingdom's largest sports-goods retailer and operates roughly 670 stores worldwide.