Frasers Group’s debt has risen to £1.2 billion as the Sports Direct owner continues to invest in international expansion, luxury retail and strategic brand partnerships.
Frasers Group’s total net debt increased from £941 million to £1.26 billion in the year to 26 April 2026. Excluding its financial services securitisation facility, net debt increased from £847.5 million to £1.17 billion, with the group attributing the rise to capital expenditure, international acquisitions and strategic investments.
The increase comes as Frasers continues to pursue its Elevation Strategy, with group revenue rising 8.7% to £5.33 billion during the year. International revenue increased 59.2% to £1.6 billion, although UK Sports revenue fell 4.7% and Premium Lifestyle revenue declined 6.9%.
Retail profit from trading rose 22.1% to £912.5 million, while adjusted profit before tax fell 4% to £538 million. Frasers said this reflected higher impairments, investment-related costs and increased net bank interest costs.
The group has continued to build its luxury portfolio, including through its Flannels division and investment in US luxury retailer The Webster.
It has also increased its stake in Hugo Boss as it pursues a takeover of the German fashion brand. Frasers’ holding has risen to 47.89% following its €38-per-share offer, with the group intending to increase its stake above 50%.
The potential takeover comes as the fashion brand faces weaker trading. Its second-quarter sales fell 9% on a currency-adjusted basis to €905 million, while EBIT dropped 28% to €59 million. “We appreciate Frasers Group’s continued long-term commitment to Hugo Boss and look forward to maintaining a constructive relationship with them,” said Hugo Boss Supervisory Board Chairman Stephan Sturm on the latest transaction.
Frasers also acquired Harvey Nichols out of administration in August. The deal included the luxury retailer’s six UK stores, ecommerce business, inventory and international franchise agreements.
Harvey Nichols resumed online trading under Frasers Group earlier this week, with brands including Moncler, Canada Goose and Ganni available through the relaunched website. The retailer now sits alongside Flannels as part of Frasers’ wider luxury strategy.
Frasers’ net capital expenditure increased 68.5% to £651 million during FY26, while the group also completed international acquisitions including Holdsport in South Africa and XXL in the Nordics.
In its FY26 results, Michael Murray, CEO of Frasers Group, said the Elevation Strategy was “going from strength-to-strength”, while acknowledging subdued consumer confidence and excess inventory across the sector.
The group said it remains committed to international expansion but has not provided FY27 financial guidance while the Hugo Boss and Accent Group takeover offers remain ongoing.
Frasers Group has been contacted for comment.