Mike Ashley’s Frasers Group PLC (LSE:FRAS) will update on its progress towards a 30% profit growth target when it reports half year results as it build on strategic success of recent years and a raft of acquisitions that have helped it expand amid difficult economic conditions.
With majority stakeholder Mike Ashley stepping down as chairman since Frasers last reported, the upcoming results should give insight to any changes to the group’s strategy.
It is difficult to gauge the likelihood of this though, considering Ashley still advises the board and it is his son-in-law, Michael Murray, who has taken over as chief executive.
As ever Frasers has been busy with corporate activity, completing its acquisition of Gieves & Hawkes, the 250-year old bespoke Savile Row tailor, in late November, as well as snapping up Missguided, I Saw It First, MySale and building stakes in ASOS this year – all of which are online retailers – as well as Hugo Boss.
Hargreaves Lansdown analyst Matt Britzman said it showed how Frasers is looking to grow its digital presence, with the upcoming results likely to confirm how successful these acquisitions have been in doing so.
In terms of Frasers growth target, Britzman added: “Four months on from when the outlook was last updated, it will be revealed just how far along the group is in delivering on this target, amidst a tough economic environment.”
Last month, analysts at RBC Capital Markets suggested Frasers should be resilient to any economic downturn given its exposure to several markets, from more luxury goods through its Flannels chain, to low-priced sports products at Sports Direct and an almost dizzying range of other shop-fronts in between, including Debenhams.
Frasers’ share price has climbed over 14% so far this year, having been one of success in recent years, helping it to regain its place in the FTSE 100 after a near-150% gain since late 2019.