Frasers Group ups stake in Boohoo

(Sharecast News) - Mike Ashley's Frasers Group lifted its stake in Boohoo on Thursday to 9.1% from 7.8%. The company - which owns House of Fraser, Sports Direct and Flannels, among others - now owns 115.4m shares in the fast-fashion retailer.

Frasers also owns stakes in AO World, Currys and Hugo Boss.

In an announcement in June, the company said: "Boohoo is an attractive proposition to us with its laser focus on young female consumers. We see potential synergies and an opportunity to strengthen our own brand proposition in collaboration with Boo Hoo, most obviously with Frasers Group brands I Saw It First and Missguided."

Victoria Scholar, head of investment at Interactive Investor, said: "Earlier this week in a similar move, the sportswear giant raised its stake in Asos to nearly 20%. Both online fashion businesses Boohoo and Asos have suffered share price declines over the past year, arguably providing an attractive opportunity to buy more shares at a discount.

"Frasers has been acquiring stakes in several retail businesses as it looks to position itself as a consumer platform for the world's best brands to provide a 'world-leading retail ecosystem'. While several retailers have been battling with the demise of the high street and the cost-of-living crisis, Frasers has been faring well lately, landing its shares up over 10% so far this year, outperforming the wider market."