Frasers Group shares jumped at market open as it announced a multimillion-pound buyback scheme.
Frasers, whose brands include Sports Direct, Flannels and House of Fraser, said it had entered into an arrangement with Barclays.
The investment bank will purchase up to 10million shares, with the buyback expected to be completed on 24 April 2026.
Mike Ashley’s group said that the ‘sole purpose of these share purchases is to reduce the company’s share capital.’
Shares in Frasers jumped by 9 per cent to 688p by mid-morning, and are up 13 per cent in the year-to-date.
CEO Michael Murray has previously said market conditions are ‘tough’
Earlier this month, the retail giant announced a 5 per cent rise in revenues to £2.6billion for the six months to 26 October, driven by rising sales for Sports Direct.
Adjusted pre-tax profit fell 3 per cent to £219million but is expected to reach its profit forecasts of £500million to £600million.
Chief executive Michael Murray was the latest business leader to bemoan the ‘shambolic run-up to the Budget‘, warning of ‘tough’ market conditions and ‘very subdued’ consumer confidence.
He added: ‘It didn’t help that the Budget got pushed back, because that elongated the confusion.’
He said the uncertainty had led to customers ‘battening down the hatches’ and that he ‘did not blame’ them for cutting back.
At the same time, the Sports Direct owner is reportedly mulling a bid for e-commerce platform SilkFred, according to Drapers.
SilkFred, which was founded in 2011, appointed administrators and deactivated its platform in late October.
Frasers is leading the FTSE 250 risers today, with the index up 160 points this morning – or 0.73 per cent.
Meanwhile, the FTSE 100 is up 0.9 per cent, hitting 9,734 by mid-morning.
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