Sign up today for an exclusive discount along with our 30-day GUARANTEE — Love us or leave, with your money back! Click here to become a part of our growing community and learn how to stop gambling with your investments. We will teach you to BE THE HOUSE — Not the Gambler!

Click here to see some testimonials from our members!

Frasers Group Is The Party Pooper Amid A Cheerful Retail Crowd

By Umair Tariq. Originally published at ValueWalk.

LON:FRAS wework spac Peacocks

While other retailers appear to be riding a cheerful wave ahead of the re-opening of the high street, Frasers Group PLC (LON:FRAS) appears to be the party pooper, sounding a cautionary note about getting carried away too soon.


Q1 2021 hedge fund letters, conferences and more

A Third Wave Of Infections Could Lead To Further Restrictions

The owner of Sports Direct, House of Fraser and Flannels has doubled the hit it expected to take due to the pandemic with expectations that a third wave of infections could lead to further restrictions on retailers.

Back in February it reckoned that it would have to deal with a non cash write-down in the value of its properties and other assets of around £100 million but now it has increased its assessment – putting a figure on impairments in excess of £200 million.

It’s taking warnings from the UK government about a return to normality being some way off seriously, expecting further restrictions to be ‘almost certain’.

Frasers Group’s Shares Rise 1%

It’s the make up of Frasers Group’s retail portfolio which puts it under particular pressure. Although it has a significant online presence, to offset some of the lost sales, it also has a large footprint of stores in high streets which have fallen out of favour with shoppers, compared to retail parks, even when restrictions have eased.

While Frasers Group sounded the alarm bell, it didn’t manage to dampen investor enthusiasm, with shares rising 1%. On the FTSE 100, JD Sports, Next and Burberry Group were also among the top risers in morning trade, ahead of the easing of restrictions for non-essential retailers on Monday.

While the risks of a potential third wave, caused by new strains of the virus are lingering like dark clouds in the distance, for now, make hay while the sun shines appears to be the sentiment dominating the retail sector.

Article by Susannah Streeter, Senior Investment and Markets Analyst, Hargreaves Lansdown


About us

1.5 million investors trust us with £120.6 billion (as at 31 December 2020), making us the UK’s largest direct-to-investor service.

Our purpose is to empower people to save and invest with confidence. We want to provide a lifelong, secure home for people’s savings and investments that offers great value and an incredible service, and makes their financial life easy.

Clients rate our service highly, 90% say we are good, very good or excellent.

Our expert research has been helping investors for almost 40 years through thick and thin – we’ve seen many market downturns.

We make things easy – it takes just five minutes to open or top up an ISA. More clients log into their accounts via our mobile app than through a desktop PC.

In 2018 we also launched Active Savings, an online savings marketplace that lets savers move money easily between banks, to help their money work harder without the hassle.

Our helpdesk is based in our HQ in Bristol. We have a tech hub in Warsaw Poland and around 100 financial advisers based across the UK. We are a financially secure, FTSE 100 company.

For more information: www.hl.co.uk/about-us

Press centre: https://www.hl.co.uk/about-us/press

Investor relations: www.hl.co.uk/investor-relations

The post Frasers Group Is The Party Pooper Amid A Cheerful Retail Crowd appeared first on ValueWalk.

Sign up for ValueWalk’s free newsletter here.


Do you know someone who would benefit from this information? We can send your friend a strictly confidential, one-time email telling them about this information. Your privacy and your friend's privacy is your business... no spam! Click here and tell a friend!





You must be logged in to make a comment.
You can sign up for a membership or get a FREE Daily News membership or log in

Sign up today for an exclusive discount along with our 30-day GUARANTEE — Love us or leave, with your money back! Click here to become a part of our growing community and learn how to stop gambling with your investments. We will teach you to BE THE HOUSE — Not the Gambler!

Click here to see some testimonials from our members!