Frasers gets back to snapping up Boohoo shares
After several months of Frasers Group consistently snapping up shares in Boohoo, the retail giant paused in January to focus elsewhere - Matches. That was until now. As of 8 May, Frasers Group Plc increased its stake in Boohoo Group Plc to 23.1%.
On the same day, Boohoo published its financial results. The group reported pre-tax losses of £159.9 million for the year to 29 February, against losses of £90.7 million the previous year.
Revenues tumbled 17% to £1.5 billion, which the firm blamed on its "increased focus on profitability and difficult market conditions".
Dropping revenues aren't a deterrent for Frasers Group, which has earned itself a reputation as the grim reaper of the high street after snapping up failing businesses including Matches, John Anthony and Zee & Co. While many businesses struggle to stay afloat during a struggling economy, Frasers, which owns Sports Direct, House of Fraser and Flannels among others, is seemingly always there with a helping hand on doomsday.
After entering Matches into administration earlier this year, the group paused its collection of Boohoo and Asos shares. After repurchasing "certain intellectual property assets" of Matches, its focus has seemingly shifted back.
Most recently, in January, Frasers upped its ownership of ASOS three times, taking its shareholding to 25.9%. It’s now the second-largest shareholder in ASOS and is close to the largest (Bestseller owner Anders Holch Povlsen reportedly holds around 26%).
Also in January, Frasers levelled up its Boohoo shares from 17% to 22%. The group first purchased a 5% stake in the fashion giant last June.
As Frasers Group continues to invest in Boohoo and Asos, rumours swirl that it's after a mega-merger.
