|Bid||253.60 x N/A|
|Ask||256.80 x N/A|
|Day's range||244.34 - 257.20|
|52-week range||2.98 - 536.35|
|Beta (5Y monthly)||1.84|
|PE ratio (TTM)||10.23|
|Earnings date||03 Aug 2020 - 07 Aug 2020|
|Forward dividend & yield||N/A (N/A)|
|Ex-dividend date||12 May 2010|
|1y target est||N/A|
Mike Ashley's Frasers Group <FRAS.L>, formerly Sports Direct, said it would reassess the viability of some of its stores following a British government decision to delay the next business rates valuation until 2023. Business rates, a particular burden for retailers, are taxes to help pay for local services, charged on most commercial properties. In March the government promised a "fundamental review" into the long-term future of business rates and, to help retail, hospitality and leisure sectors during the coronavirus crisis, exempted them from the tax for a year.
Quality and value are two of the most important drivers of stock market returns - yet many investors fail to take them seriously. At a time of deep economic un...
(Bloomberg Opinion) -- When the strongest players pull back from a market, that looks like a bad omen for the weaker peers left behind. But in U.K. retail, there are silver linings for the stragglers.The iconic John Lewis Partnership Plc last week said it would close eight shops including two big department stores, with the loss of up to 1,300 jobs. Walgreens Boots Alliance Inc. is cutting 4,000 jobs in its U.K. Boots business, including in the head office. It will also close 48 optician practices. The group was already shuttering 200 Boots stores.Further pain had been expected for Britain’s shopping malls and high streets amid the pandemic. Although some shoppers are returning, mostly to retail parks, June footfall was down 57% year-on-year, according to data provider Springboard.But the latest retreats are especially significant. John Lewis has only 36 large department stores, a relatively small estate. It has benefited from owning Waitrose supermarkets, which have performed well during the pandemic. Meanwhile, some 40% of sales were already online prior to the Covid-19 crisis, thanks to early digital investment.There is a question mark over whether John Lewis really needs to cull two major sites. Its Watford store, north-west of London, already had a rent-free deal with landlord Intu Properties Plc. Likewise, an important anchor tenant such as John Lewis could have surely done a deal with Hammerson Plc, the landlord of the Birmingham store, for better terms.As for Boots, the chain has suffered from a slump in sales of high-margin beauty and fragrance products, but most of its stores remained open during the lockdown while the government forced the closure of non-essential shops. Other retailers have not enjoyed these advantages. Mid-market fashion looks particularly exposed. Marks & Spencer Group Plc traditionally caters to an older demographic in its clothing and home furnishings business. Rising Covid-19 cases around the world may be making its customers even more reluctant to venture out. The group is already about halfway through closing 110 stores.Billionaire Philip Green’s Arcadia Group also faces a fall in demand for clothing. It has some big sites in city centers, where consumers are particularly nervous about shopping.But as the big names pull back, the tenants who remain enjoy a lessening of competition. Plus they gain some bargaining power over landlords. New Look Retail Group is among the firms in discussions about moving to more flexible rents. The shock of John Lewis closing two flagship stores could make property owners more acquiescent.One player who can be expected to make the most of this environment is Mike Ashley. The retail entrepreneur owns a majority stake in Frasers Group Plc, whose Sports Direct division is likely to have traded well through the pandemic, bolstered by online demand for home workout gear. With rival Debenhams Plc and now John Lewis shrinking, that can only help Ashley’s bid to transform some of his House of Fraser department stores using his much-maligned “Harrods of the High Street” concept. And he’s not one to miss an opportunity to put pressure on landlords. In fact, it’s his specialty.This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Andrea Felsted is a Bloomberg Opinion columnist covering the consumer and retail industries. She previously worked at the Financial Times.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Shares in Frasers (LON:FRAS) are currently trading at 328.7961 but a key question for investors is how the economic uncertainty caused by Covid-19 will affect...
Mike Ashley's Frasers Group <FRAS.L>, formerly Sports Direct, is looking to build a 10% stake in German fashion house Hugo Boss <BOSSn.DE> and gain a seat on the supervisory board, a magazine reported on Thursday. Earlier this month, Frasers said it has taken a 5.1% stake in Hugo Boss through stocks and derivatives as it continues Ashley's drive to take the British sportswear and apparel retailer upmarket.
Good shares at cheap prices are what the very best investors look for. At this time of economic turmoil and market volatility, could Frasers (LON:FRAS) be one...
(Bloomberg Opinion) -- There’s a new bling king in town. From selling cut-price tracksuits and trainers at his Sports Direct shops, Mike Ashley is now accumulating a portfolio of holdings in luxury-goods brands.The British billionaire’s Frasers Group Plc said late on Friday it had a acquired an exposure worth as much as 97 million pounds ($122 million) to German fashion house Hugo Boss AG through shares and derivative positions.The interests in Boss, known for its sharp suiting, represents Ashley’s second foray into luxury goods in the past six months. In February, Frasers, which includes the Sports Direct chain, House of Fraser department stores and Flannels luxury boutiques, spent about 20 million pounds acquiring a 12.5% stake in upmarket accessories maker Mulberry Group Plc, best known for its iconic Bayswater bag.The strategy for both investments is the same; securing close commercial relationships with an investment interest. They’re meant to buttress Ashley’s goal of turning House of Fraser into the “Harrods of the high street.” While this has been much maligned, the brash retail mogul may just have his chances if the company can position itself well coming out of the coronavirus lockdown, especially with rival Debenhams Plc significantly weakened.Like Mulberry, Hugo Boss is an important brand for both House of Fraser and Flannels, which also sells Burberry and Balenciaga. The companies have worked together as commercial partners for some time.There may be reasons for striking now.Hugo Boss shares have lost half of their value in the past year, underperforming the Bloomberg Intelligence luxury peer group, and the company faces a management shake-up just as Chief Executive Officer Mark Langer’s sensible turnaround loses steam. Langer, a long-serving executive who took the top job in 2016, will leave on Sept. 30. The company said recently it was in talks with former Tommy Hilfiger Group CEO Daniel Grieder to be his successor.If Grieder is appointed, it’s not clear how he will revive Hugo Boss’s fortunes. One option could be to follow the luxury-industry trend of cutting back on distribution to retailers not considered upmarket enough for one’s brands. If Grieder were to seek to rationalize supply to House of Fraser, then Ashley, as a big holder, would be able to make his views known.Meanwhile, the Marzotto Italian textile-manufacturing family, a long-time shareholder in Hugo Boss, increased its stake from 10% to 15% in February, sparking speculation the company could be taken private. If this were to happen, Ashley would have a seat at the table too.As with his investments in high street retail, Ashley’s dabbling in luxury has been distinctly mixed. I argued in February that he couldn’t lose with the stake in Mulberry. But the British brand has since been hurt by the lockdown, and parted company with its star designer Johnny Coca, who has now joined Louis Vuitton. Shares in Mulberry have fallen 17% since Ashley took his stake.While Ashley’s interest in Boss may be strategic, it is not without risk. Hugo Boss still generates the majority of its sales from clothing, not the best place to be in a pandemic as many consumers essentially skip a fashion season. What’s more, demand for its smart tailoring in business attire may be permanently damaged by a shift to working from home. Its new management and design teams will have to work hard to offset that by accelerating Langer’s push into younger, more casual clothing, and bolstering revenue from accessories, which are proving more resilient.Ashley’s moves usually raise eyebrows, but he often takes the right strategic direction. With his attention now focused on brands that are far from cut price, Burberry Group Plc has several potentially alluring characteristics: It’s in a turnaround, its shares have dipped and it’s a Flannels favorite. The British luxury house could yet fit in Ashley’s shopping bag.But for now, he will be hoping that his timing for striking at Hugo Boss suits him better than Mulberry did.This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Andrea Felsted is a Bloomberg Opinion columnist covering the consumer and retail industries. She previously worked at the Financial Times.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Mike Ashley's Frasers Group <FRAS.L>, formerly Sports Direct, has taken a 5.1% stake in German fashion house Hugo Boss <BOSSn.DE> through stocks and derivatives, continuing his drive to take the British sportswear and apparel retailer upmarket. Frasers said on Friday the investment reflected its growing relationship with Hugo Boss and belief in its long-term future. "Frasers Group intends to be a supportive stakeholder and create value in the interests of both Frasers Group's and Hugo Boss' shareholders," it said.
It is hard to get excited after looking at Frasers Group's (LON:FRAS) recent performance, when its stock has declined...
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Today we'll evaluate Frasers Group plc (LON:FRAS) to determine whether it could have potential as an investment idea...
(Bloomberg Opinion) -- You really can’t blame Mike Ashley for trying.The billionaire founder of Frasers Group Plc tried to keep his sporting goods stores open, arguing that they provided essential supplies of fitness equipment to self-isolating Britons. The retailer has since made a U-turn, closing its Sports Direct and Evans Cycles stores on Tuesday as the U.K.’s nationwide lockdown took effect.Ashley may be everyone’s favorite pantomime villain — and his brash attempt to keep stores open prompted a backlash from politicians — but as usual, the entrepreneur isn’t totally off point. People around the world are asking themselves exactly what they may need to stay healthy and sane as they hunker down at home to ride out the coronavirus crisis.There seems to be some logic missing in the categories that the British government has deemed essential and non-essential. Some are obvious: supermarkets and pharmacies, for example, should stay open. Clothing shops are clearly far less necessary. Many, including Next Plc, Arcadia Group Ltd.’s Topshop and Primark, the budget fashion chain owned by Associated Foods Plc, had already closed their doors.But other categories are more ambiguous. Why are bicycle shops deemed more essential than electronics and home appliance retailers? Dixons Carphone Plc was among the chains lobbying to be given essential status. The group has now shuttered stores. (Frasers closed Evans Cycles anyway while seeking more clarity from the government.)The government argues that bicycle shops are crucial to help workers get around while avoiding public transport. But surely with many Britons now forced to work from home, it’s also imperative for people to be able to buy computer and phone gear they didn’t know they really needed until now. If they’re out buying food, shouldn’t they be able to buy a cable or a printer too? And what if the washing machine breaks? Many large electronics and appliance stores are conveniently located in the same retail parks as supermarkets.True, people can order via the internet, and many sales will indeed migrate to this channel. But there is a danger that with so many online orders for essential items, delivery capacity for anything else won’t be able to keep up.And filling one’s virtual supermarket shopping cart with things like an extension cord or two, in order to collect it from their local store, risks putting more pressure on staff who are busy filling shelves with staple items and keeping up with an influx of panic-buyers.Kingfisher Plc, which owns B&Q in the U.K. and Castorama in France, has closed its U.K. DIY estate while it looks to find the best ways to still provide essential items. Its Screwfix business, which serves tradesmen, has moved to “click and collect” only. That may be a model worth trying to alleviate some of the issues created by the lockdown, as well as opening only a limited number of stores as Halfords Plc is set to do. This could ensure much needed goods are available while discouraging shopping sprees.The debate about the right approach to take comes as retailers are facing a catastrophic loss of trade. Trying to do everything to salvage some sales is only logical. Especially as the shutdown could not have come at a worst time with quarterly rent payments due tomorrow.Of course retailers that do stay open must be conscious of protecting not only customers, by respecting social distancing best practices, but also their own staff, who need gloves and masks for example. At some point the virus will abate, and chains will want to emerge with their reputation in tact.But it’s a difficult balance to strike. And it is one that chains in the U.S. are facing as well as the virus case count increases there, although many companies, including Nike Inc., Apple Inc. and L Brands Inc.’s Bath & Bodyworks, have already closed their stores.It’s important the government help British chains find the equilibrium they need to weather this crisis.This column does not necessarily reflect the opinion of Bloomberg LP and its owners.Andrea Felsted is a Bloomberg Opinion columnist covering the consumer and retail industries. She previously worked at the Financial Times.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Unfortunately for some shareholders, the Frasers Group (LON:FRAS) share price has dived 35% in the last thirty days...
(Bloomberg Opinion) -- Intu Properties Plc is in an almighty pickle. The owner of the Lakeside and Trafford Centre shopping malls said on Wednesday that it had been unable to raise between 1 billion pounds ($1.3 billion) and 1.5 billion pounds of equity.That’s not surprising. Even before the outbreak of the new coronavirus, tapping shareholders looked like a long shot. Intu has 4.5 billion pounds of net debt, representing a whopping 68% of the market value of its properties. Despite the value of its estate plunging by 2 billion pounds, more pain on high streets and in malls looks likely. As my colleague Chris Bryant has argued, Intu left it far too late to raise equity.The failure leaves the company in a bind. Some of its borrowings are at a corporate level, but others are against individual properties. It has almost 1 billion pounds falling due in 2021. Intu can pay the interest on its debts, but covenants look tight. Intu said it was still within its borrowing limits right now, but there was a risk that it could breach covenants at its next test in July.Susan Munden, an analyst at Bloomberg Intelligence, estimates that a 10% fall in the value of its properties and rental income would require another 300 million pounds of liquidity. And that’s before any impact on Intu’s tenants from the Covid-19 scare. As I have noted, there is already anecdotal evidence that footfall has been hit by worries about contracting the disease in shops and malls. So far Intu said that it had not seen a meaningful drop.Options for securing this funding are limited.Intu could look to sell more assets. It has already offloaded its interest in two Spanish sites and part of a mall in Derby. It still owns 100% of the Trafford and Lakeside centers, so it could bring in partners there too. But given the scale of the crisis, some form of debt-for-equity swap looks inevitable. The shares, which have fallen more than 90% over the past year, traded at less than 10 pence on Wednesday. At this level, they are pricing in expectations that there’s a chance of the equity being wiped out. That’s a boon for short sellers, including Crispin Odey, but a worry for long-suffering shareholders, as well as bondholders who would likely take a haircut in a radical restructuring.For all its woes, Intu has some decent assets. Some malls have adjoining land, which could be used for residential development.One wild card could be Mike Ashley, majority owner of Frasers Group Plc, formerly Sports Direct. He is no stranger to a bargain, and will have many stores in Intu malls. Frasers shareholders likely wouldn't welcome his intervention, especially after his debacle at Debenhams. But Intu investors and bondholders might. The property company certainly needs a solution and fast.To contact the author of this story: Andrea Felsted at email@example.comTo contact the editor responsible for this story: Melissa Pozsgay at firstname.lastname@example.orgThis column does not necessarily reflect the opinion of Bloomberg LP and its owners.Andrea Felsted is a Bloomberg Opinion columnist covering the consumer and retail industries. She previously worked at the Financial Times.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
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It's really great to see that even after a strong run, Frasers Group (LON:FRAS) shares have been powering on, with a...