Profit before tax at Frasers Group has increased by 13.1% year-on-year to £544.8m, which was in the top end of its guidance range, with its brand, Sports Direct, leading the way in sales.

The firm said in its full year results that its retail revenue dropped by 1.3% to £5.35bn, with UK sports brands made up 51.7% of total group revenue, despite falling by 1.5% on the 2023 financial year.

Frasers said that this was as a result of the planned declines in the Game UK and Studio Retail brands, as well as the impact of House of Fraser store closures.

The group stated that it witnessed a "very encouraging early performance" of its loyalty scheme, Fraser Plus, which it sees as having potential as a new revenue stream and a “key pillar” of its brand ecosystem, adding that it has a long-term ambition of £1bn+ in sales.

Chief executive at Frasers Group, Michael Murray, said: "This has been a break-out year for building Frasers' future growth. As well as delivering a strong trading performance, particularly from Sports Direct, we made significant progress with our elevation strategy. We expanded our retail ecosystem, establishing valuable partnerships with new brands.

"Our brand relationships have never been stronger, giving us invaluable support as we continue the international expansion of our business. We invested in group-wide operational efficiencies in warehouse automation and digital infrastructure, which we expect to yield a tangible impact as early as FY25. And we generated new growth opportunities with the rollout of Frasers Plus, including recently signing our first third party partner in THG."

In the year to 28 April 2024, the group said that its group strategy was "underpinned by a strong balance sheet", with net assets increasing to £1.87bn, even after a £126.4m share buyback scheme.

Furthermore, its adjusted earnings per share jumped by 33.6% to 95.8 pence per share.

Looking ahead, Frasers Group said it "remains confident" that its strategy will drive continued strong performance, aiming to achieve an increase of its adjusted profit before tax, in the range of £575m-625m.

Equity analyst at Hargreaves Lansdown, Aarin Chiekrie, added: "The so-called elevation strategy is moving along nicely, with more stores upgraded in the period. This improves the overall customer shopping experience by displaying products in a more flattering and digitally integrated environment, which is also helping to strengthen relationships with major global brands.

"These stronger partnerships should help unlock further growth opportunities and increase the brand’s ability to pull consumers into its stores. Increased automation at its warehouses, which significantly reduced inventory levels, should help improve profitability moving forward too.

"Looking further ahead, performance in the new financial year is likely to get a boot in the right direction thanks to the football fever that a successful run at the men’s Euros created. Many football fans ran out to purchase replica shirts to wear while they cheered the national team along. The group also expects to complete the purchase of Netherlands retailer Twinsport, further supporting its ambitions to expand across Europe."

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