Frasers Forecasts Profit Dip Amidst Consumer Confidence Crisis

British retailer Frasers lowered its annual profit guidance due to diminished consumer confidence, following the Labour government's tax hikes. The company's adjusted pretax profit for 2024/25 is now projected at 550-600 million pounds, down from previous estimates, amid challenging trading conditions and increased operational costs.

In a recent announcement, major British retailer Frasers has adjusted its annual profit forecast downward, attributing this change to a sharp decline in consumer confidence.

This downturn follows the Labour government's recent budget, which included significant tax increases. The resultant consumer caution has led to challenging trading conditions, mirrored by rivals such as JD Sports Fashion.

Frasers now predicts its adjusted pretax profit for the 2024/25 financial year to be between 550 million and 600 million pounds, reflecting the broader impact of rising energy bills and increased minimum wage on UK retail sales.

(With inputs from agencies.)