Mike Ashley's Frasers Group is set to benefit from recent acquisitions despite facing challenges in its luxury division.
The retailer behind Sports Direct, Flannels and House of Fraser said its pre-tax profit is set to rise to £625million in the present financial year.
This prediction means the company would see an £80million increase in its preferred measure of profit, despite a 20% fall in pre-tax profit in the last 12 months.
The retail powerhouse said its reported profits were lower because of the loss of some properties, including the acquisition of Matchesfashion which recorded a loss of £12.5million.
Frasers described there was an "expected" decline in revenue due to the decline in Studio Retail, Game UK and the planned closure of House of Fraser stores.
But, Michael Murray, chief executive of Frasers' said he was confident that the company’s “elevation” strategy would “drive stronger trading, bolstered by a summer of sport, the integration of recent acquisitions and synergies from our automation programme”.
Read more in The Times.
FTSE 100
The UK's flagship share index, the FTSE 100, was down 61-points at 8,204 shortly after opening this morning.
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Companies reporting today
Bridgepoint Group - Half Year Results
Burberry - Q1 Trading Statement
Hargreaves Lansdown - Interim Management Statement