Frasers Group’s £70M share buyback sends stock soaring 9% on FTSE 250
Frasers Group has announced a £70 million share repurchase program, sending its stock price surging. By mid-morning, the company’s shares had climbed 9% to 688p, making it the top performer on the FTSE 250. The broader market also saw gains, with the FTSE 100 up 0.9% at 9,734 points.
The repurchase program will see Barclays purchase up to 10 million Frasers Group shares on behalf of Mike Ashley’s family investment vehicle. The process is set to complete by 24 April 2026, with the aim of reducing the company’s share capital.
Frasers Group’s strong stock market reaction follows a mixed financial update. Revenue for the six months to 26 October rose 5% to £2.6 billion, boosted by sales at Sports Direct. However, adjusted pre-tax profit dipped 3% to £219 million. Despite this, the company remains on track to meet full-year profit forecasts of £500 million to £600 million.
Meanwhile, reports suggest Frasers Group is exploring a potential bid for troubled e-commerce platform SilkFred. The fashion retailer entered administration in late October, adding to the group’s recent strategic moves.
The FTSE 250 also benefited from Frasers Group’s surge, rising 160 points (0.73%) by mid-morning. The company’s share price jump came as investors responded positively to the repurchase news and its ongoing financial performance.
The £70 million repurchase has given Frasers Group a significant stock market boost, with shares reaching 688p. The move comes alongside steady revenue growth and potential expansion plans, including a possible bid for SilkFred. Analysts will now watch whether the company maintains its profit targets for the year ahead.
