Frasers’ Boohoo and ASOS stake-building continues

Frasers Group is continuing its enthusiastic stake-building in major UK fashion e-tailers Boohoo Group and ASOS while their share prices remain low.

The latest purchase revealed on Wednesday takes its Boohoo position to 16.5%, up from the 15.1% level it reached early last week.

Frasers’ earlier purchases had already made it the single largest shareholder in Boohoo, whose shares currently trade for just over 30p each, down from the £4+ they reached in 2020.

The latest notified ASOS purchase by the firm was late last week when it revealed it had raised its stake from 22.7% to 23%.

ASOS shares are priced just below £3.90 each, again well below the £75+ they reached in 2018.

And they remain at ‘bargain’ levels, falling further on Wednesday, which means it won’t be any surprise in Frasers raises its stake further.

Despite Frasers’ stake-building, the ASOS share price dipped after the company said late on Tuesday that its full-year results would be delayed by a week. But the company stuck by its guidance and also announced a strategy update that it will deliver on 1 November. It will be interestign to see whether any mention is made of the ever-larger Frasers stake in the firm.

The performance for the period to 3 September should see full-year adjusted group revenue of £3.538 billion, while H2 adjusted EBIT will be “more than £38 million”, resulting in a full-year adjusted EBIT loss of “no more than £31 million”.