Frasers Group expects continued profit growth
Retailer Frasers reports interim earnings this week, and hopes to build on the success of its most recent full-year figures.
Frasers Group expects continued profit growth
Retailer Frasers reports interim earnings this week, and hopes to build on the success of its most recent full-year figures.
Frasers Group, the retail giant, announced a significant surge in profits during its full-year results in July. This positive outcome can be attributed to the continued spending habits of young shoppers, who have shown no signs of slowing down.
Looking ahead, Frasers Group anticipates a profit before tax ranging from £500 million to £550 million for the current financial year. This projection indicates a strong outlook for the company and suggests that their upward trajectory is set to continue.
One notable aspect of Frasers Group's success lies in its strategic shift towards aligning itself with major brands such as Adidas and Nike. This change in direction marks a departure from their previous approach and reflects a desire to establish closer relationships with renowned industry players. By forging these partnerships, Frasers Group aims to enhance its market position and tap into the popularity and reputation of these well-established brands.
Over the past three years, Frasers Group has experienced a remarkable growth in earnings per share (EPS). This upward trend is a testament to the company's ability to adapt to changing consumer preferences and capitalize on emerging opportunities in the retail sector.
Analyst ratings for Frasers Group
Refinitiv data shows a consensus analyst rating of between ‘buy’ and ‘hold’ for Frasers Group – 2 strong buy, 3 buy, 2 hold and 1 sell - with the median of estimates suggesting a long-term price target of 900 pence for the share, less than a percentage point below the current share price as of 4 December 2023.
Technical outlook on the Frasers Group’s share price
The Frasers Group share price, which has risen by over 25% year-to-date, remains on an upward trajectory with the November 2022 and March 2023 highs at 921.5p to 925.0p in its sights.
Frasers Group Weekly Candlestick Chart
A weekly chart close above the 925.0p March peak would open the way for the July 2022 peak at 1002.0p to be next in focus.
Frasers Group Daily Candlestick Chart
Following its August-to-October tight sideways trading range between 834.5p to 773.5p, the Frasers Group share price resumed its May-to-December ascent in early-November and has been trading within an upward sloping trend channel ever since.
Support below the lower uptrend channel line at 871.0p comes in at the previous reaction low – a daily candlestick low which is lower than the one on its preceding and following days – which can be seen at the 24 November low at 850.0p. While it underpins on a daily chart closing basis, the Frasers Group share price medium-term uptrend remains valid.
This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.
Act on share opportunities today
Go long or short on thousands of international stocks with spread bets and CFDs.
- Get full exposure for a comparatively small deposit
- Trade on spreads from just 0.1%
- Get greater order book visibility with direct market access
See opportunity on a stock?
Try a risk-free trade in your demo account, and see whether you’re on to something.
- Log in to your demo
- Take your position
- See whether your hunch pays off
See opportunity on a stock?
Don’t miss your chance – upgrade to a live account to take advantage.
- Trade a huge range of popular stocks
- Analyse and deal seamlessly on fast, intuitive charts
- See and react to breaking news in-platform
See opportunity on a stock?
Don’t miss your chance. Log in to take advantage while conditions prevail.
Live prices on most popular markets
- Equities
- Indices
- Forex
- Commodities
Prices above are subject to our website terms and agreements. Prices are indicative only. All share prices are delayed by at least 15 minutes.
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
