Mike Ashley’s Frasers Group has upped its stake in fashion brand Hugo Boss, bringing its total share in the company to £305m.
In a stock exchange announcement this morning, the Sports Direct owner said it now controlled 2.47 per cent of the company’s shares, or 13.92 per cent when accounting for shares via the sale of put options.
Frasers Group previously cut its large stake in the company at the start of 2023, bringing its total investment in the group from £770m to £580m.
Since then, Hugo Boss’s share price has fallen by up to 20 per cent, while Frasers Group have slowly cut its investment in the stock.
Last month, the German clothing brand saw its price fall over 13 per cent in a single day, after it flagged weak demand in China and concerns about US consumer sentiment in its first-quarter results.
While the company is aiming to expand, opening 103 new stores last year and upping its marketing budget, sales growth of only 11 per cent in the first three month of the year (compared to 18 per cent previously) has left the market sour on its prospects.
Morningstar analyst Jelena Sokolova warned that investors might be worried that the large investments made by Hugo Boss might not be supported by strong growth anymore.
In total, the company’s stock price has fallen 27.2 per cent since the start of 2024.
Last week, Mike Ashley was spotted partying with the heads of major fashion brands, including the chief of Hugo Boss, in a historic castle in Cholmondeley.
The Telegraph reported that bosses from Adidas, Nike and Under Armour all attended the gathering.