In a strategic investment move, Frasers Group is actively increasing its ownership in the prominent UK fashion e-tailer, Boohoo Group, capitalizing on the current low share prices. Simultaneously, the group appears to have reduced its stake in ASOS, following a surge in its holdings last week.
The most recent disclosure, made on Wednesday, has raised Frasers Group’s ownership in Boohoo to 16.5%, up from the 15.1% it held early last week.
Frasers Group had already established itself as the largest shareholder in Boohoo, a company whose shares are currently trading at slightly over 30p each, a substantial decline from the £4+ levels achieved in 2020.
Regarding its stake in ASOS, the firm had announced an increase from 22.7% to 23% late last week. However, a recent filing indicates that the stake has now decreased to 19%. This adjustment may reflect concerns about ASOS’s forthcoming annual results, scheduled for release next week.
ASOS shares are presently priced just below £3.90 each, a considerable drop from the £75+ levels in 2018. Given the attractive share prices, it wouldn’t be surprising if Frasers Group further increases its stake, even after the recent reduction.
It remains to be seen whether ASOS will address the Frasers stake in the firm in its upcoming full-year results and strategy update, scheduled for November 1st.
For the period ending on September 3rd, the performance is expected to reveal full-year adjusted group revenue of £3.538 billion, with second-half adjusted EBIT anticipated to exceed £38 million. This should result in a full-year adjusted EBIT loss of «no more than £31 million.