Frasers Group shares rise, reiterates profit target
Frasers Group says it is well on track to reach its profit target. IGTV financial analyst @AngelineOng looks at what’s behind the strength and the stock reaction.
(Video Transcript)
Frasers' success lies in brand partnerships
British retail company Frasers Group has released its first-half results and pre-tax profit came in at £310 million on revenues of £2.7 billion or thereabouts. The group says it's well on track to reach its profit target. Early in July, it said it anticipated a profit before tax ranging from £500 million to £550 million for the current financial year.
This projection indicated a strong outlook for the company and also suggested that their upward trajectory looks set to continue. For the past few months or so, Frasers Group has been increasing its stake in Boohoo and ASOS. Just having a look at the shares here because there is also a fundamental thing behind the climb here, if you like.
Success looks set to continue
One notable thing is that Frasers Group's success lies in its strategic shift towards aligning itself with major brands like Adidas and NIKE, reflecting a desire to establish closer relationships with renowned industry players and enhance its market position.
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