Frasers Group Plc

Annual Report and Accounts 2022

1

ABOUT FRASERS GROUP

Founded as a single store in 1982, Frasers Group Plc (Frasers Group, the Group, the business or the Company) is today the UK's largest sporting goods retailer by revenue. The Group operates a diversified portfolio of sports, fitness, premium lifestyle and luxury fascias in over 20 countries. We have more than 30,000 colleagues across five business segments: UK Sports Retail, Premium Lifestyle, European Retail, Rest of World Retail and Wholesale & Licensing.

Our strategy is to provide consumers with access to the World's best sports, premium and luxury brands by providing a World-leading retail ecosystem. Aligned with this vision, we have defined the Group's purpose: To elevate the lives of the many by giving them access to the World's best brands and experiences.

Mission Statement

To serve our consumers with the World's best sports, premium and luxury brands.

Business Ethos

We do not run the business for the short term but work to ensure we deliver shareholder value over the medium to long- term, whilst adopting accounting principles that are conservative, consistent and simple.

Our Impact Since 2007

We became a listed public company in 2007. In the years since we floated, the Group has greatly contributed to the British economy. This includes:

  • Approx. £250m paid in colleague share bonuses
  • Approx. £200m paid in sales commission to retail bonuses
  • Have more than 30,000 colleagues worldwide, approx. 22,000 of which are in the UK.
  • Contributed approx. £700m in UK Corporation Tax
  • Contributed approx. £2,300m in VAT and Duty
  • Contributed approx. £200m in NI employer contributions

Outlook

We are delighted to report a record-breaking year for Frasers Group with an adjusted profit before tax of £339.8m (FY21: loss £39.9m), despite the significant economic headwinds and well-chronicled challenges across the sector.

Our Elevation strategy has remained laser focused, and we have re-structured our team to execute it with conviction. It is underpinned by our core strengths and rock-solid foundations. Although the backdrop remains challenging, this momentum gives us the confidence of achieving an adjusted profit before tax of between £450m and £500m for the next financial year.

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CONTENTS

  1. Highlights and overview 2 - About Frasers Group 4 - Group at a Glance
    6 - Financial Highlights
    7 - Strategic and Operational Highlights
  2. Strategic Report

8 - Chair's Statement

11 - Our Business

14 - Our Strategy - To Build the World's Most Compelling Brand Ecosystem

16 - Key Performance Indicators

18 - CEO Report and Business Review

29 - Financial Review

    1. - Non-Financial Information
    2. - Workers Representative Report
    3. - ESG Report (including TCFD)
    1. - S172 Statement
    1. - Principal Risks and Uncertainties
    1. - Viability Statement
  2. Governance
    1. - Corporate Governance Report
    1. - The Board
    1. - Nomination Committee Report
    1. - Remuneration Report
    1. - Audit Committee Report
    1. - Directors' Report
    1. - Directors' Responsibility Statement
  4. Group Financial Statements
    1. - Independent Auditors Report to the Members of Frasers Group Plc
    1. - Consolidated Income Statement
    2. - Consolidated Statement of Comprehensive Income
    3. - Consolidated Balance Sheet
    4. - Consolidated Cash Flow Statement
    5. - Consolidated Statement of Changes in Equity
    6. - Notes to the Financial Statements
  6. Company Financial Statements
    1. - Company Balance Sheet
    2. - Company Statement of Changes in Equity
    3. - Notes to the Company Financial Statements
  8. Glossary
    1. - Consolidated Five Year Record and Alternative Performance Measures
    1. - Company Directory
    1. - Shareholder information

3

GROUP AT A GLANCE

UK SPORTS RETAIL

55.0% Total Group Revenue

£2,640.1m

Up 0.7%

UK Sports Retail includes core sports retail store operations in the UK, plus all the Group's sports retail online business (excluding Bob's Stores, Eastern Mountain Sports and Sports Direct Malaysia), the gyms, SRL, the Group's Shirebrook campus operations, retail store operations in Northern Ireland, Evans Cycles and GAME UK.

Our store footprint is significant, with 808 stores across the UK, totalling approximately 6.7m sq.ft. of retail space. The majority of stores are operated under the Sports Direct, USC, Evans Cycles and GAME fascias.

PREMIUM LIFESTYLE

22.0% Total Group Revenue

£1,056.6m

Up 1.7%

The Group's Premium Lifestyle division offers a broad range of clothing, footwear and accessories from leading global contemporary and luxury retail brands through our fascias in the UK: FLANNELS, Cruise, van mildert, House of Fraser, Sofa.com and Jack Wills along with their related websites. The majority of these fascias operate as multi-brand premium retail destinations and are focused on providing fashion conscious consumers with high-end and on-trend products.

The segment is supported by our Group-wide centralised commercial and support functions, giving the benefits of scale and operating efficiencies to each fascia. The segment is a significant part of the Group's new generation retail concept and as such, in certain locations, Premium and Lifestyle stores are co-located alongside our Sports retail stores to benefit from increased customer footfall and operating synergies.

The total Premium Lifestyle store count is 179 stores and approximately 4.0m sq.ft. of retail space.

EUROPEAN RETAIL

16.4% Total Group Revenue

£790.2m

Up 0.5%

European Retail includes all the Group's sports retail stores, management and operations in Europe including the Group's European distribution centres in Belgium and Austria as well as GAME Spain. The total European store count is 489 stores and approximately 3.7m sq.ft. of retail space.

During FY22, management continued to elevate the Group's European stores and work to further tailor the Group's consumer value propositions to our local markets.

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REST OF WORLD RETAIL

3.1% Total Group Revenue

£150.3m

Down 1.1%

Rest of World Retail includes sports and outdoor retail stores in the US under the Bob's Stores and Eastern Mountain Sports fascias and their corresponding e-commerce offerings. It also includes the Group's retail stores in Malaysia, under the Sports Direct fascia, and its corresponding e-commerce offering. Subsequent to the period end the Bob's Stores and Eastern Mountain Sports fascias and their corresponding e-commerce offerings were disposed of.

As at the period end, the total Rest of World store count is 76 stores and approximately 1.3m sq.ft. of retail space.

WHOLESALE & LICENSING

3.5% Total Group Revenue

£168.1m

Down 0.7%

The Wholesale & Licensing segment operates our globally renowned heritage Group brands (such as Everlast, Lonsdale, Karrimor and Slazenger) and our wholesale, licensing and distribution relationships across the World, as well as our partnerships with third party brands that we license-in to sell certain products.

The Group's own brands are managed both individually and centrally within this segment. This unique, integrated approach to brand management leverages the expertise of our people, encourages innovation, and ensures consistency.

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Frasers Group plc published this content on 26 September 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 26 September 2022 16:30:04 UTC.