Frasers Group PLC (LON:FRAS) promises to release its results on Thursday, after delaying last week, and it will give investors should get a clearer picture of how trading has been since the reopening of shops.
Analysts at Hargreaves Lansdown expect online sales of sports equipment and workout gear to have aided dismal trading, however, it is hard to quantify.
However, given the retailer’s financial year ended in April, including just over a month of lockdown, all eyes will be on the outlook statement.
The former Sports Direct chain wants to turn into “the Selfridges of Sport”, a plan that may have been hindered by lower spending during the pandemic.
“The strategy’s behind the eclectic mix of high street acquisitions in recent years. And at the end of June the group acquired a 6.1% stake in Hugo Boss,” analyst Sophie Lund-Yates commented in a preview.
“We’d like to hear more behind the rationale for this deal, and how a growing relationship with this higher-end name fits into the story.”
Antofagasta investors cling to dividend hopes
Given copper is often seen as a key macroeconomic barometer, investors will be eyeing the results as a possible check on the health of the global economy.
Meanwhile, the company will also be eyed for an update on the state of coronavirus in Chile, after warning at its AGM in May that an outbreak could hit production, although at the time output was still running near to target levels. Social unrest and political debates over a new constitution in the country may also have knock-on effects further down the line.
However, in the immediate term, investors will be looking to production and its associated costs, as well as how steep the company’s profit decline has been, with analyst predicting it will fall by half in the full year. The interim dividend is also likely to be closely watched for signs of further cuts due to the pandemic.
Thursday August 21
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