Frasers Group has accelerated its European growth trajectory by finalizing a majority shareholding in a prominent Italian premium multi-sport retailer, Maxi Sport SpA. This transaction serves as a critical structural anchor for the group’s entry into the Italian market, transitioning from its historical UK-centric model to a diversified continental powerhouse. By integrating Maxi Sport’s established 18-store network - which includes six flagship locations—Frasers is effectively bypassing the high barriers to entry in the Italian technical sports sector.
The agreement ensures operational continuity, as the founding Sala family maintains a minority stake and leadership roles to preserve regional brand equity while leveraging Frasers’ massive logistical scale.
Elevation strategy boosts fiscal performance amid market volatility
The acquisition aligns with Michael Murray, CEO’s ‘Elevation Strategy,’ which has shifted the group’s focus toward high-margin, premium retail environments. Fiscal results for H1, FY26 reflect the success of this model, with international revenue rising by 42.8 per cent, driving total group revenue to approximately £2.58 billion. While broader retail conditions remain subdued due to inventory surpluses and cautious consumer spending, Frasers has maintained its profit guidance of £550 million to £600 million. The group’s gross margin improved by 160 basis points, largely credited to a more sophisticated product mix and the ‘Frasers Plus’ loyalty ecosystem, which now accounts for a significant portion of online sales volumes.
Unlocking direct retail corridors in Southern Europe
Beyond the immediate acquisition, Frasers intends to utilize Maxi Sport’s infrastructure to introduce its core Sports Direct brand to Italian consumers. This move mirrors recent expansions in Hungary, Romania, and the Netherlands, where the group has absorbed regional competitors to build an interconnected European retail web. By combining Maxi Sport’s expertise in technical categories like winter sports and technical running with Sports Direct’s global brand partnerships - including enhanced ties with Nike and Hugo Boss - Frasers is positioning itself to dominate both the aspirational and performance-wear segments. This cross-border synergy is expected to mitigate domestic UK cost pressures, such as the £50 million increase in statutory operational overheads, by diversifying revenue across more resilient European markets.
Frasers Group is a global retail conglomerate specializing in sports, premium lifestyle, and luxury goods through brands like Sports Direct and Flannels. Operating extensively across Europe and Asia, the group is currently executing an international ‘Elevation Strategy’ to modernize store formats and enhance margins. Founded in 1982, Frasers now maintains a robust £3 billion credit facility to fund its aggressive multi-year global expansion.
