Shares in Mike Ashley’s retail empire Frasers (FRAS) have fallen more than 15% in one month and are down almost 30% year-to-date, with investors worried about the UK consumer outlook and potential distractions from a boardroom battle with Boohoo (BOO:AIM) and overseas acquisitions dragging on the stock.

An unexpected profit warning on 5 December, blamed on a Budget-induced dip in consumer confidence, sent the shares sharply lower and this stock price plunge means Frasers will be relegated from the FTSE 100 for the first time in eight years on 23 December.

In its earnings alert, the Sports Direct-to-Flannels owner cut its year-to-April 2025 adjusted pre-tax profit guidance from £575 million to £625 million, which would have represented 10% growth using the mid-point of the range, to £550 million to £600 million, meaning growth will be half the level it previously expected. Frasers pinned the downgrade on UK consumer weakness in the run up to, and following the Budget, which also forced the retail conglomerate to increase its cost forecast for the 2026 financial year.

The company posted an 8.4% drop in retail revenue to £2.46 billion for the half ended 27 October, driven by a reduction of 7.6% in UK sports retail sales and a 14.1% decline in premium lifestyle sales that will concern investors as Frasers heads into the crucial Christmas period.

However, Frasers insisted it had been working hard on its Elevation strategy, strengthening global strategic brand partnerships, growing Sports Direct and its Frasers Plus loyalty and consumer finance business, and said it was starting to see the benefits from integrating recent acquisitions and its ambitious stock-reduction targets.

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