Billionaire Mike Ashley's Frasers Group has expanded its investments in struggling sportswear brands. The Sports Direct owner acquired a 8.8% stake in Under Armour, according to an Oct. 1 filing.
As Stuart Biggs writes, the purchase is the latest in a string of similar moves from Frasers: "It recently disclosed a stake of almost 6% in Puma SE, and acquired Nordic sporting-goods retailer XXL last year. Under Armour fits the pattern."
Its shares have slumped since August when the Baltimore-based athletic retailer downgraded its outlook, with sales forecast to drop in most of its global markets amid what it called a 'challenging consumer demand environment.'
Source: Bloomberg Markets · Summarized by HeadlinesBriefing