Frasers has seen “weaker” confidence amongst shoppers since the Autumn Budget and as a result the high street retailer has reduced their profit forecast.
Mike Ashley revealed the retailer saw a slump in sales for the half year with far lower profits.
For the current year Frasers reported an adjusted pre-tax profit between £550 million and £600 million, previously they forecast between £575 million and £625 million.
Frasers said that in recent months “consumer confidence has weakened and trading conditions have been tougher.”
In the half year to 27 October Frasers reported underlying profits dropped by 10.5% to £266.8 million.
Michael Murray, chief executive of Frasers Group, said: “The first half of this year has been another period of progress for the group, delivering on our objectives as the elevation strategy continues to take the business to the next level.
“Sports Direct UK delivered further sales growth, and our property and financial services divisions are seeing encouraging progress.
“We are set to deliver another year of profitable growth but, given recent weaker consumer confidence leading up to and following the Budget, full-year 2025 APBT (adjusted profit before tax) is now expected to be in the range of £550 million to £600 million.”
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