Frasers Group, led by Mike Ashley, has expanded its ownership in the German luxury brand Hugo Boss to 10.1%. On Monday, the British retail group announced that it has acquired a substantial number of shares in Hugo Boss, including common stock, contracts for difference, and put options. This comes shortly after Frasers revealed its initial 5.1% stake in the company.
With the addition of the put options, Frasers has stated that its maximum exposure to Hugo Boss amounts to approximately €204 million (£186m). Frasers Group expressed its confidence in Hugo Boss’ future prospects and its intention to be a supportive shareholder, with the goal of creating value for both Frasers and Hugo Boss shareholders.
As a result of this news, shares of Hugo Boss experienced a 1.8% increase in early morning trading on Tuesday, while Frasers’ share price saw a 0.2% rise. Known previously as Sports Direct, Frasers Group has a history of making strategic investments, including the purchase of distressed retailers and entry into the luxury segment. In February, the company acquired a 12.5% stake in the British handbag company Mulberry.
Frasers Group has been actively repositioning its fashion empire to focus on premium third-party brands. It has been working on transforming several House of Fraser stores into a mini-chain that offers luxury products. The investments in Hugo Boss and Mulberry serve as major milestones in achieving this objective. Frasers Group’s portfolio already includes popular brands such as Flannels, Lillywhites, Donnay, Slazenger, Kangol, Karrimor, Lonsdale, and French Connection.