Frasers Faces Profit Squeeze Amid Tax Woes

Frasers, a leading British retailer, has lowered its profit forecasts due to declining consumer confidence after the new Labour government's tax-increasing budget. Rising costs and weakened sales amid the economic climate have further impacted the group's financial outlook.

British retail giant Frasers has revised its annual profit guidance downward, citing a slump in consumer confidence following the Labour government's tax hike-heavy budget.

The company, formerly known as Sports Direct and primarily owned by Mike Ashley, is not alone in this sentiment. On Thursday, it joined footwear retailer JD Sports Fashion in raising concerns over worsening trading conditions.

Following the lacklustre retail sales data for November, which highlighted declining non-food spending due to low consumer confidence and rising energy costs, Frasers anticipates additional costs of at least 50 million pounds heading into the 2025/26 fiscal year.

(With inputs from agencies.)