Mike Ashley’s Frasers builds stakes in Burberry and Under Armour

Frasers Group, the UK retail conglomerate founded by Mike Ashley, has increased its stake in luxury fashion brands Burberry and Under Armour. The company, which also owns Sports Direct and Flannels, has raised its holding in Burberry from 4.2 to 6.3 percent, with the shares acquired through put options. This move comes just days after Frasers unveiled Frasers Group Luxury, a new arm of the firm dedicated to up-market clothing, including its investments in Burberry and Mulberry.

Burberry's CEO, Joshua Schulman, praised Frasers' understanding of customers and its ability to provide high-end fashion to shoppers in regional cities. Schulman, who joined Burberry in 2024, is making progress in reviving the fashion house, which has shifted its focus towards timeless British luxury.

Despite its upmarket ambitions, Frasers Group maintains a presence in the sportswear market, having acquired an 8.8 percent stake in Under Armour, the American sportswear brand. The company holds around 16.6 million shares, worth approximately $80 million, in Under Armour. Under Armour's CEO, Kevin Plank, welcomed Frasers' investment, expressing optimism about the company's potential as a shareholder and commercial partner. Under Armour's sales declined by three percent to $1.1 billion in the three months ending June.

Frasers Group also holds shares in other athletic companies, including Puma, and sports brands such as Slazenger, Everlast, Lonsdale, and Karrimor. The company's shares have risen by more than three percent, closing at 846p, with a year-to-date gain of 26 percent.