Frasers Group launches £70m buyback as shares jump
Barclays-backed programme to buy up to 10 million shares aims to shrink share capital; comes as revenue rises but profits dip; SilkFred bid rumor adds to investor interest.
Frasers Group, the owner of Sports Direct, Flannels and House of Fraser, announced on Monday that it had entered into an arrangement with Barclays to buy back up to 10 million of its shares, with the buyback expected to be completed on 24 April 2026. The group said the sole purpose of these share purchases is to reduce the company's share capital.
Investors greeted the news with a rally in the stock market. Frasers shares jumped about 9% to 688p by mid-morning, and were up about 13% for the year to date. The update comes as the group continues to navigate a challenging retail environment.
In its six months to Oct. 26, Frasers reported revenue up 5% to £2.6 billion, driven by improving demand for Sports Direct. Adjusted pre-tax profit fell 3% to £219 million, though the company reiterated it remains on track to meet its prior full-year guidance of £500 million to £600 million.
CEO Michael Murray said market conditions were tough and that consumer confidence remained subdued, noting that the delayed Budget contributed to confusion among shoppers. "It didn’t help that the Budget got pushed back, because that elongated the confusion," Murray said.
Separately, Drapers reported Frasers is weighing a bid for SilkFred, the online fashion platform that appointed administrators and deactivated its site in late October. A potential SilkFred deal would add e-commerce exposure to Frasers' mix of brands.
Frasers is among the FTSE 250's strongest risers, helping lift the index as the FTSE 100 was up about 0.9% to around 9,734 by mid-morning.
Shares of Frasers have rallied this year as the company emphasizes capital management alongside growth opportunities, with the buyback serving as a tool to optimize the balance sheet while it contends with a volatile retail landscape. The group remains the parent of a portfolio that includes Sports Direct, Flannels and House of Fraser, and the buyback signals an ongoing approach to capital allocation amid a tougher consumer backdrop.
