Frasers Group in profits warning; abandons FY guidance on Covid-19

Frasers Group issued a profits warning on Friday and scrapped future guidance as it expected the Covid-19 crisis to cause “significant disruption” to sales.

The company, formerly Sports Direct, said it would not hit its forecast core earnings growth range of 5% - 15%, including House of Fraser but pre-IFRS 16 adjustments, and “given the ongoing uncertainty, the company is no longer giving formal guidance in relation to the financial year 2020”.

“Whilst it is too early to estimate what the full impact from Covid-19 will be on the company's performance for the current financial...and future periods, the board expects that Covid-19 will cause significant disruption to its business, including reducing customer footfall,” the company said in a statement.