Frasers Group ups stake in Hugo Boss again

Mike Ashley’s Frasers Group has again increased its stake in high-end label Hugo Boss as the British fashion group pushes forward with its elevation strategy.

Frasers Group, which owns brands Sports Direct, Flannels, House of Fraser and Jack Wills, announced late on Thursday it has increased its stake in the German brand and now owns 1.5 million shares of its common stock, representing 2.1 percent of its total share capital.

It also now owns 16.3 million shares of Hugo Boss' common stock via the sale of put options, representing 23.2 percent of its total share capital.

Frasers said that, taking into account the premium it will receive under the put options, its maximum aggregate exposure in connection with its acquired interests in Hugo Boss is now approximately 715 million euros or 600 million pounds.

“This investment reflects Frasers Group's belief in the Hugo Boss brand, strategy and management team,” the company said.

Frasers initially invested in Hugo Boss in 2020 as part of the group’s ongoing elevation strategy, which looks to reposition the group as a more up-market business. That same year, Frasers bought a stake in British luxury label Mulberry.

Since 2020, the group has upped its investment in Hugo Boss several times, most recently just last month.

The group previously said a “key strategic priority for Frasers Group is the elevation of our retail proposition and building stronger relationships with premium third-party brands”.