Stock of the Week: Frasers Group

Sports retail arm of the Mike Ashley empire will be boosted by this summer's sporting events, but fears over more lockdowns remain

James Gard 2 July, 2021 | 11:31AM
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Stock of the week post-it

With Wimbledon now in full swing, we asked our Twitter followers to choose a stock of the week with a tennis theme. So far it’s “deuce” between Japan’s Sumitomo Rubber Industries (5110), maker of Dunlop rackets and balls, and the UK’s Frasers Group (FRAS), which owns the Slazenger brand. In a last minute tiebreak between the two, Frasers has come out on top.

Frasers Group is better known for owning sports Sports Direct, which has a presence on many British high streets, and the group owns a wide range of sporting brands including Lonsdale, Everlast and Karrimor. Frasers Group’s wider retail empire goes beyond sport. After a series of acquisitions the group owns department store House of Fraser, which was bought out of administration in late 2019, Sofa.com, French Connection, Game and Evans Cycles. Founder and current chief executive Mike Ashley still controls more than 60% of the company. Shares floated at 300p in 2007 and surged to over 900p in early 2014. Concerns over corporate governance and worker welfare, as well as the impact of Covid-19 on retail, have dented the share price since the 2014 peak. Still, at around 600p, the shares are now above their pre-pandemic peak.

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James Gard  is content editor for Morningstar.co.uk

 

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