Frasers announces new £80 million share buyback
By Geoffrey Smith
Investing.com -- Frasers Group (LON: FRAS ) said on Monday it will buy back up to £80 million of stock in a new program aimed at bolstering its stock in the post-Mike Ashley era.
If fully executed, the program will reduce the retail group's share count by up to 10 million, or 2.2%.
Frasers, whose biggest source of revenue is the UK-based Sports Direct chain, said in December it expects pretax profit of as much as £500M this year, despite a tough macroeconomic backdrop in its home market.
The group has used the cash flows from Sports Direct to expand into more upmarket areas in recent years, not only with the acquisition of House of Fraser but also by accumulating a 34% stake in German fashion brand Hugo Boss (ETR: BOSSn ) and buying a portfolio of premium fashion brands from rival JD Sports (LON: JD ).
It has also exploited the relative strength of its balance sheet in recent years to scoop up distressed assets in the retail sector that were brought low by the pandemic. These include parts of the Debenhams portfolio in the UK and the Australian retail group MySale.
The Times reported earlier this month that the company is now preparing to make substantial investments in two retail malls in the UK.
Frasers' shares opened up 2.8% in London in response.
Add Chart to Comment
We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
- Enrich the conversation
- Stay focused and on track. Only post material that’s relevant to the topic being discussed.
- Be respectful. Even negative opinions can be framed positively and diplomatically.
- Use standard writing style. Include punctuation and upper and lower cases.
- NOTE: Spam and/or promotional messages and links within a comment will be removed
- Avoid profanity, slander or personal attacks directed at an author or another user.
- Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
- Only English comments will be allowed.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.
Drop an image here or Supported formats: *.jpg, *.png, *.gif up to 5mb
Drop an image here or