Frasers Group Lowers Profit Forecast Following Decline in Shopper Confidence

The retail giant cites weaker consumer confidence and higher costs tied to the autumn Budget as it revises its profit outlook for the year.

Frasers Group has reduced its adjusted pre-tax profit forecast for the current financial year to a range of £550 million to £600 million, down from the previously expected £575 million to £625 million.
The company attributes the revision to declining consumer confidence before and after the autumn Budget, coupled with tougher trading conditions.
Revenues for the six months ending October 27 fell by 8.3% to £2.54 billion, driven by challenges in unprofitable segments like Game UK and Studio Retail, despite growth in Sports Direct sales.
Operating profits for the half-year dropped by 10.5% to £266.8 million, with £75 million in cost savings partially offset by planned reductions in low-margin sales.
Frasers expects an additional £50 million in costs next year due to increased employer National Insurance contributions and other measures introduced in the Budget.