On June 27, 2025, Frasers Group acquired the remaining 59.17 percent of the shares in XXL for NOK 10 per share. The total purchase consideration, including the value of the previous shareholding, amounted to £68.6 million (approximately SEK 900 million at today's exchange rate) at the time of acquisition.
The annual report shows that Frasers Group has completed a full impairment of goodwill related to XXL, an item amounting to £152.4 million (close to SEK 2 billion at today's exchange rate). The Group explains in the report that XXL was acquired in a position of "significant distress." It is also noted that the business "continues to face challenges and has not yet generated positive cash flow." During the period XXL was consolidated within the group during the financial year, the sports chain accounted for a turnover of £393.9 million and an operating loss of £26.2 million.
If XXL had been part of the group for the entire financial year, revenue is estimated to have amounted to £474.5 million, with an operating loss of £31.6 million. In its forecasts, Frasers Group expects an average annual sales growth of 0.6 percent for XXL over the next five years.
Own Payment Solution Gains Market Share Online
Within the e-commerce segment, the company reports figures for its own credit and loyalty service, Frasers Plus. During the financial year 2026, the service accounted for 20.5 percent of the Group's online sales in the UK. This is an increase from 12 percent the previous year.
Retail sales made via Frasers Plus amounted to £340 million during the year, compared to £195 million the year before. At the end of the financial year, the service had 1.1 million active customers.
Overstocking and Dampened Consumer Confidence
Frasers Group CEO Michael Murray comments on the broader retail market, noting that the industry as a whole is affected by the macroeconomic situation.
We continued to feel the effects of tough trading conditions, dampened consumer confidence and industry-wide excess inventory levels through the second half and into the beginning of FY27, says Michael Murray in the report.