Shares in Frasers Group have climbed by over 7% so far today after the retail giant announced a major new share buyback arrangement with Barclays.
The retail giant said it has entered into an arrangement with Barclays Bank PLC, acting through its investment bank, which allows Barclays to purchase up to 10 million ordinary shares in the company during open periods between now and 24th April 2026.
Any shares acquired under the arrangement will be purchased on Frasers Group’s behalf and in accordance with its existing shareholder authorities and the UK Listing Rules.
The aggregate purchase price of shares bought under the programme will not exceed £70m.
Following their purchase, the shares will be placed into treasury, with the company making clear that the sole purpose of the buyback is to reduce its share capital.
The announcement follows a trading update earlier this month in which the London-based firm reported a 5% increase in revenues to £2.6 billion for the six months to 26th October.
The growth was driven primarily by strong sales performance at Sports Direct, one of the group’s core brands.
While adjusted pre-tax profit fell 3% year-on-year to £219m for the period, the company reiterated confidence in its outlook and said it still expects to deliver full-year profit within its forecast range of £500m to £600m.
The business now has a share price of 676.5p and its market cap currently sits at just over £3bn.