Sports Direct owner to invest £100m in digital as profits fall by 20 per cent

The owner of several national retail chains has today reported that it will be investing more than £100m into its digital strategy as profits take a 20 per cent fall.

Frasers Group - previously Sports Direct International - is aiming to increase its EBITDA by 10 to 30 per cent next year with investment in the growth of its online channels.

The group’s profit decreased by 19.9 per cent in 2020, falling from £179.2m last year to £143.5m.

Frasers owns several brands that trade nationally and internationally, including House of Fraser, Sports Direct and Evans Cycles.

Excluding its acquisitions during the period, which included Game and Jack Wills, and on a currency neutral basis, revenue decreased by 12.6 per cent.

David Daly, non-executive chair of Frasers Group, commented: “The uncertainty over Brexit, followed by the Covid-19 crisis has undoubtedly resulted in unprecedented times for businesses and the consequences will be felt for the foreseeable future.

“We will commit ourselves to working collaboratively with all our key stakeholders to protect the future of our business and the health and livelihood of our 30,000 staff who work within the Frasers Group.

“During the time our stores were closed, our online business performed extremely well and I commend our staff, particularly those based at Shirebrook, for their hard work and dedication in ensuring our web operations continued and remained effective.

“We will continue with the elevation strategy and the expansion of the new store format supported by our talented and loyal staff and we consider we are well placed for the future.”