Frasers loves an acquisition or three and the purchase of various companies has helped to drive sales over the past year.
Much more interesting is how profit has shot up, which shows the company is able to make good money from its expanding empire and offer the type of products that consumers are still eager to buy.
AJ Bell’s Russ Mould said: “It puts Michael Murray off to a good start as chief executive and shows to the market that the business is still capable of thriving without Mike Ashley at the wheel.
“Frasers is often misunderstood, with many people thinking it is just about Sports Direct and the pile ‘em high, sell ‘em cheap mentality. In fact, Frasers has a growing premium retail offering in the form of Flannels which sells luxury designer fashion for adults and children.
“The roll-out of new Flannels stores, and success with the online channel, were behind 22.2% organic revenue growth from that part of the business in the period.
“Weak retailers are going to struggle in the current environment and so Frasers may be ready to pounce on any opportunities to buy known brands on the cheap.
“The company’s game plan is to acquire brands or businesses that will help to expand its skillset and customer reach, whether that’s a posh menswear outfit to support Flannels, a credit offering to cater for a certain type of customer or a business that brings with it social media expertise. Frasers is certainly not afraid to try new opportunities.
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