Frasers Group launches £70m share buyback via Barclays as stock climbs

Frasers Group plc said on Tuesday it has entered into an arrangement with Barclays to buy back up to 10 million of its shares, a scheme valued at about £70 million, with the buyback expected to be completed by 24 April 2026. The announcement comes as the retail group, owner of Sports Direct, Flannels and House of Fraser, seeks to manage its capital structure amid a volatile consumer backdrop. Shares rose in early trading, advancing about 9% to around 688p and were up roughly 13% year-to-date.

The company said the sole purpose of the purchases is to reduce the company's share capital. The buyback will be conducted through the investment bank, which will acquire the shares on Frasers' behalf under the plan and in compliance with regulatory requirements.

The update follows Frasers' recent interim trading statement for the six months to Oct. 26, which showed total revenue up 5% to £2.6 billion, driven by stronger Sports Direct sales. Adjusted pre-tax profit declined 3% to £219 million, though the group said it remains on track to meet full-year guidance of £500 million to £600 million in adjusted profit before tax, subject to a stable trading environment. Management characterized current conditions as challenging amid broader macro uncertainty and cautious consumer spending. Chief executive Michael Murray noted the “tough” market backdrop and described the run-up to the Budget as a source of confusion that weighed on demand, saying customers were battening down spend as confidence remained subdued.

Separately, Drapers reported Frasers is reportedly weighing a bid for SilkFred, the online fashion platform that was placed into administration and deactivated in late October. The potential SilkFred move would come as Frasers continues to evaluate growth opportunities across its portfolio of brands.

Market activity reflected a cautious mood as several big-cap and mid-cap names moved in session, with Frasers among the FTSE 250 leaders while the FTSE 100 hovered higher on the morning. By mid-morning, the broader market was trading higher, with modest gains supporting a sense of cautious optimism for the retail group and its peers.

Frasers' buyback announcement adds to a string of financing decisions companies have made in a year defined by volatility in consumer spending and inflation. As the group navigates a period of tighter consumer confidence and ongoing cost pressures, investors will be watching for further updates on cash generation, profitability, and any strategic moves intended to strengthen shareholder value over the coming quarters.