• Investing
  • Stock
Round Table Thoughts
  • Economy
  • Editor’s Pick
Home Investing Frasers Group Defying Odds as Efforts to Scale Start to Pay
Investing

Frasers Group Defying Odds as Efforts to Scale Start to Pay

by November 25, 2022
by November 25, 2022 0 comment
Share
0
FacebookTwitterPinterestWhatsapp

Although UK retail stocks have witnessed a considerable decline, Frasers Group Plc has defied the slump, which is a sign that Mike Ashley’s efforts to make the company the “Selfridges of Sport” are paying off. The stock is on track to be the only FTSE 350 Retail Index stock that has gained this year with a year-to-date increase of 15% relative to the benchmark, which has shed a third of its value.

Strategy to take stores upmarket enabled Frasers to boost scale

Ashley announced the campaign in 2016 and sought to take stores upmarket by giving more space to branded sportswear. In a note to clients, Numis’s Simon Bowler and Georgios Pilakoutas stated that the strategy opened up access to new goods and enabled Frasers to boost scale. By acquiring Savile Row tailor Gieves & Hawkes on Friday, Fraser’s highlighted its premium objectives and added one of the most known brands in British suitmaking.

Numis analysts commenced coverage on the stock this month with a buy rating and a price target of 1,000 pence, implying a 12% from the current price. However, they note that the target has upside potential, stating that the group’s underlying cash generation still needs to be fully grasped.

According to Bloomberg data, Ashley owns a 69% interest in Frasers. The self-described “power drinker,” who is no longer a director, now serves in an advising capacity since Michael Murray assumed the position of CEO in May.

The company’s tenacity is remarkable, given that most UK merchants are experiencing the biggest cost-of-living pinch since the Second World War. The downturn is anticipated to result in a 2% decrease in output and the loss of 500,000 jobs. However, on July 21, Frasers increased their earnings outlook, causing the shares to rise 27% that day.

Sports Direct to contribute 75% of Frasers revenue in 2023

Richard Chamberlain and other RBC analysts claim that the firm may have an advantage due to its aggressive pricing. Additionally, they believe that because they primarily cater to the young demographic, businesses like Sports Direct and the upscale Flannels brand will shield the business from the full effects of the slump. In 2023, Frasers expects Sports Direct to account for about 75% of its projected revenue.

The post Frasers Group Defying Odds as Efforts to Scale Start to Pay appeared first on Invezz.

You Might Also Like
  • Lloyds Bank share price forecast for 2023
  • Why are the crypto markets up? Market eyes very important week
  • Don’t expect a bull market anytime soon: David Roche
  • 2023 is not the year to own Target stock: Wells Fargo
Share
0
FacebookTwitterPinterestWhatsapp

previous post
Here’s what protests at Foxconn plant mean for the Apple stock
next post
What to expect from the retailers this holiday quarter?

You may also like

‘There is a lot that’s underestimated at Biogen’: CEO Viehbacher

January 9, 2023

40+ Spotify statistics 2022: SPOT stock, revenue and performance

December 2, 2022

Is it time to sell energy stocks as oil returned...

November 29, 2022

Why are the crypto markets up? Market eyes very important...

January 9, 2023

Swiss Startup dua launches token sale on AllianceBlock’s Fundrs

November 25, 2022

Index Options vs. Stock Options: What’s The Difference?

February 17, 2023

Is the cheap Kodal Minerals share price a buy now?

December 20, 2022

SteadyOptions 2022 – Year In Review

January 16, 2023

Pro reacts to Musk selling another $3.6 billion of Tesla...

December 15, 2022

SteadyOptions 2023 – Year In Review

January 5, 2024

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Krispy Kreme stock plunges after doughnut chain pauses McDonald’s rollout, pulls outlook

      May 8, 2025
    • Don’t Buy Robinhood Stock… Until You See This Chart Setup

      May 8, 2025
    • UnitedHealthcare sued by shareholders over reaction to CEO’s killing

      May 8, 2025
    • The Unpredictable Stock Market: How to Make Sense of It

      May 8, 2025
    • AMD CEO calls China a ‘large opportunity’ and warns against strict U.S. chip controls

      May 7, 2025

    Popular Posts

    • 1

      Trump-era China sanctions ended by Biden may be...

      June 27, 2024 2,632 views
    • 2

      Walz’s honeymoon with China gets fresh scrutiny as...

      August 9, 2024 2,339 views
    • 3

      Biden appointee played key role in recruiting Chinese...

      June 25, 2024 2,320 views
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful...

      July 10, 2024 2,303 views
    • 5

      Harris VP pick spent years promoting research facility...

      August 29, 2024 2,186 views

    Categories

    • Economy (7,009)
    • Editor's Pick (2,066)
    • Investing (538)
    • Stock (2,530)

    Popular Posts

    • 1

      Trump-era China sanctions ended by Biden may be revived under new House GOP bill

      June 27, 2024
    • 2

      Walz’s honeymoon with China gets fresh scrutiny as Harris camp blasts ‘lying’ critics

      August 9, 2024
    • 3

      Biden appointee played key role in recruiting Chinese businesses to Delaware: ‘Longtime friends’

      June 25, 2024
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful of Chinese spy threats

      July 10, 2024
    • 5

      Harris VP pick spent years promoting research facility that collaborated with ‘Chinese military company’

      August 29, 2024

    Latest News

    • Krispy Kreme stock plunges after doughnut chain pauses McDonald’s rollout,...

      May 8, 2025
    • Don’t Buy Robinhood Stock… Until You See This Chart Setup

      May 8, 2025
    • UnitedHealthcare sued by shareholders over reaction to CEO’s killing

      May 8, 2025

    Categories

    • Economy (7,009)
    • Editor's Pick (2,066)
    • Investing (538)
    • Stock (2,530)

    Disclaimer: RoundTableThoughts.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2024 RoundTableThoughts.com. All Rights Reserved.

    Round Table Thoughts
    • Investing
    • Stock
    Round Table Thoughts
    • Economy
    • Editor’s Pick

    Read alsox

    Wide, flat SPX Diagonal Spread

    January 16, 2023

    Bankman-Fried says he’s willing to testify...

    December 9, 2022

    Options Trading Strategy: Bear Put Spread

    May 12, 2023
    Sign In

    Keep me signed in until I sign out

    Forgot your password?

    Password Recovery

    A new password will be emailed to you.

    Have received a new password? Login here