Frasers Group Plc increased its stake in Burberry Group Plc to 7.42% of voting rights, according to a regulatory filing on Monday, putting it on track to become the brand’s biggest investor. The position was acquired through the recent sale of put options, which if exercised would make Frasers the largest investor in the British fashion label. This move aligns with billionaire Mike Ashley’s latest bet on a rival luxury brand and comes as CEO Joshua Schulman attempts to turn around Burberry by reducing prices and focusing on signature trench coats and scarves.
Frasers’ growing luxury focus follows its recent status as the largest investor in Hugo Boss AG. Despite this, the luxury sector faces headwinds from wealthier customers cutting back and Middle East conflict dampening spending. Burberry shares were down 19% year-to-date through Friday’s close but rose up to 1.6% in London on Monday.
Frasers, founded by Mike Ashley—who controls over two-thirds of the company but is run by his son-in-law Michael Murray—has a history of shaking up European retailers and is the second-largest shareholder in Mulberry Group Plc. Last week, Frasers declared an 8.8% stake in Under Armour Inc., signaling a new push into the US market.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing