Member Info for JeremyP

Great find….It’s all unravelling now for Shein….

Some analysts and commentators have speculated that Frasers is betting on a revival in the fortunes of online retailers, which thrived during lockdowns but have since struggled amid the cost of living crisis. Shares in Asos have fallen 26 per cent and Boohoo and Currys shares have lost 23 per cent and 30 per cent respectively in the past year, providing an attractive buying opportunity.

Frasers increased its holding in Asos to 22.8 per cent from 19.7 per cent via derivatives, according to recent filings. It also raised its equity stake in Boohoo to 15.1 per cent from 13.4 per cent less than two weeks after the retail group overtook Mahmud Kamani, the group’s co-founder who holds 12.9 per cent, to become the fast-fashion retailer’s largest individual shareholder. Kamani and Carol Kane, his co-founder, hold an aggregate stake of 25 per cent.

With UK online clothes sales anticipated to grow 12.7 per cent between this year and 2027, Alice Price, an analyst at GlobalData, said Frasers was “being strategic in its continued investment in pureplays”. Boohoo reported a decline in revenue of 17.4 per cent in the six months ending August 31, and the retailer Asos recorded a 10 per cent decline in sales in the year to September 3.

“Despite these unfavourable results, these pureplays still remain well ahead of pre-pandemic levels, so Frasers Group’s investments should turn out to be beneficial,” Price said.

Jonathan de Mello, a retail property expert, said the stake-building in online brands was “partly opportunistic given the share price drops these businesses have seen, but I do think that — given the size of the recent Frasers store openings — that it is potentially thinking about physical presence for some of these brands in Frasers.

“It makes sense really as both Boohoo and Asos have suffered recently because of a lack of physical presence with high return rates and falling demand.” Frasers, which has more than 950 shops in the UK, has been opening stores after sales bounced back following the end of high street lockdowns.

Kien Tan, senior retail adviser at PwC, the auditing firm, said Frasers would not invest in businesses “that they didn’t think had long-term growth potential in their own right”.

He added: “There is a strategic element to all these acquisitions: typically some combination of complementary brands, new capabilities, vertical integration, new geographies and so on. That is part of the reason why there’s so much merger and acquisition activity by retailers at the moment — several good retail assets have become available at attractive valuations, with less competition from other investors, such as private equity.”

Tan said it was not just Frasers acquiring or taking investments: “Next and to a lesser extent other major UK retailers like Marks & Spencer and JD Sports are also doing so.”

Reduced yesterday by .7% hence the large UT. So systematica reduced a big chunk inside the UT. These guys have more tricks than Lassie!

We even finished lower than asos who have delayed their accounts…you couldn’t make it up…

So the shorts basically returned it to where it was before the UT spike yesterday. I did say yesterday they would throw the lot at it to keep it down. Oil tanking and the pound down any normal discretionary stock would have been flat to positive but the games continue

I agree Volt…doesn’t say a lot does it when the ceo takes close to £1M a year and when the SP tanks to ATL he still doesn’t buy any shares. Unbelievable!

20p now….what was the point of buying 30% of this??

Next don’t just sell clothes. Plus Wolfson is the best in the business.

Interesting article. No mention that next online sales are now 65% of their business. Plus coming out the day before asos results is a bit fishy…

DYOR

Spot on! Two underwater already

A near 5% reversal today that’s a good sign for a share. Will the shorts have a go in the morning. Two of them are underwater already. A good green hammer candle on the daily.

Asos

They had more to cut and their inventory was shocking

“ Admittedly, Frasers’ acquisitions have not always been successful, and its brands — including House of Fraser, Evans Cycles and Jack Wills, plus stakes in listed retailers AO World, Asos and Boohoo — look disparate.

But Frasers shopped cheaply (the retail shares were bought at prices a third cheaper than at the start of the year) .

The ride may be choppy, but Sports Direct should succeed where it expands. Buy Frasers.

Aren’t….

The BOD are doing anything positive to stop him buying up the free float. Another £60-70m and he owns over 30%

No smoke without fire! MA thinks he can nick Boo and asos on the cheap. He is halfway there with Boo and only 10% away with Asos.