Frasers lands THG's luxury brands

Frasers Group (LSE:FRAS) shares gained 3.5% in Monday’s dealing, boosted by its deal to acquire luxury goods websites from THG Plc (LSE:THG).

The transaction includes the Coggles brand, and, will also see THG’s Myprotein brand protein powders sold in Fraser’s Sports Direct shops.

Frasers will also use THG's technology in certain areas of its business.

It is seen to be part of Mike Ashley's strategy to shift Frasers' focus towards premium brands, alongside its Sports Direct business.

The deal involves deeper integration of the businesses, with Frasers will set to manage couriers and run THG’s Australian delivery operations. THG will also see Frasers integrating its buy-now-pay-later platform into THG's checkout system.

It potentially gives THG’s online retail business greater foothold.

THG’s market value is down significantly since its IPO in 2020, from a valuation of £5.6 billion to approximately £800 million today.

The company’s luxury division had sales of about £43 million in the 2023 financial year and was closer to break even.

The Coggles brand, founded in 1974, sells men's and women's clothing, shoes, and home products.