Frasers Group lifts stake in Hugo Boss to £305m

(Sharecast News) - Mike Ashley's retail conglomerate Frasers Group has raised its stake in Hugo Boss after a sharp drop in the German fashion group's share price since the start of the year. Frasers said a recent "strategic investment" has lifted its shareholding to 1.74m shares of common stock, representing 2.47% of Hugo Boss's total share capital, or 9.80m shares via the sale of derivatives known as put options, representing a 13.92% stake.

"Frasers Group is pleased to announce that it has recently increased its investment in Hugo Boss," the company said in a statement.

"After taking into account the net premium it will receive, Frasers Group's maximum aggregate exposure in connection with its net acquired interests in Hugo Boss, with the common stock holding valued at the closing share price on 29 May 2024, is approximately €360m (c. £305m)."

Frasers, which owns Sports Direct, House of Fraser and Flannels, and holds investments in a number of retail names across Europe, has slowly sold stock in Hugo Boss in recent years since taking a 10% stake in 2020.

However, shares in the Frankfurt-listed brand have fallen by 27% since the start of 2024 and now sit at €48 a pop.