Mike Ashley’s Frasers Group defies the cost of living crisis

Frasers Group Plc stuck to its earnings guidance as a series of acquisitions helped Mike Ashley’s shopping empire weather the cost-of-living crisis that is weighing on most retailers’ margins.

Rasers, which owns Sports Direct and House of Fraser, is sticking to its target of an adjusted pre-tax profit of £450m-500m (£549m-500m) for this financial year. The group said it had “strong strategic and commercial momentum” that would bolster its performance at a time when many consumers are cutting back on spending as costs soar.

Chief Executive Officer Michael Murray is upgrading stores and positioning Frasers to serve both smaller budgets and larger spenders with the Flannels brand, which sells luxury goods.

Frasers has been a rare winner in the rising inflation crisis and is one of the few UK retailers to have seen its share value rise this year. The company has gained struggling competitors like Savile Row tailor Gieves & Hawkes and online companies Missguided and Studio Retail Group. The company has increased its stakes in suit maker Hugo Boss AG and fast fashion hub Asos Plc.

The British retailer said acquisitions boosted its first-half sales, which rose 12.7 percent. When takeover deals are removed from the numbers, sales rose less than 3.9 percent.

Shares are up 16 percent this year.

https://www.independent.ie/business/world/mike-ashleys-frasers-group-defies-cost-of-living-crisis-42204466.html Mike Ashley’s Frasers Group defies the cost of living crisis

Fry Electronics Team

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