As London and the South East are forced into Tier 4 lockdown, Mike Ashley’s Frasers Group has issued a profit a warning, with many stores now forced to close again.
Frasers Group, which includes House of Fraser, Sports Direct, Evans Cycles, Game Digital and Agent Provocateur, has informed shareholders that it will probably not achieve the 20% to 30% profits boost it publicised earlier in December.
In a statement to the stock market, Frasers Group said: “From Sunday 20 December 2020, the Government closed non-essential retail in London, the South East and East of England with no warning. This has led to virtually all of our stores closing in these areas.
“Given this is a peak trading period, and combined with the high likelihood of further rolling lockdowns nationwide over the following months at least, such is the uncertainty of when stores can and cannot open that the board of Frasers Group plc can no longer commit to Frasers Group achieving its publicised guidance of a 20% to 30% improvement in underlying EBITDA (pre-tax profits before one-off costs) during FY21 and, accordingly, is withdrawing its guidance.”
While stores remain closed to high street shoppers, retail outlets are still allowed to fulfil click and collect orders.
