// Mike Ashley’s Frasers Group has increased its investment in Hugo Boss and now owns 13.7% of its shares via the sale of put options
// The investment fits in with Frasers Group’s elevation strategy of making the group, formerly known as Sports Direct, more upmarket
Mike Ashley’s Frasers Group has increased its investment in Hugo Boss.
Frasers Group now owns 4.5% of Hugo Boss’ total share capital and 13.7% of shares via the sale of put options.
The group, which also owns upmarket chains including Flannels and Cruise alongside House of Fraser and Sports Direct, holds shares worth approximately £390 million in Hugo Boss.
The retailer said its investment reflects its belief in the Hugo Boss brand, strategy and management team”.
“Frasers Group continues to intend to be a supportive stakeholder and create value in the interests of both Frasers Group’s and Hugo Boss’ shareholders,” it added.
Hugo Boss beat its full-year 2021 sales targets, and reported record quarterly revenues over the golden quarter, with sales soaring 55% year-on-year to €906m (£756.23m), which was up 12% on the same period in 2019.
READ MORE:What next for Studio Retail under Mike Ashley?
Mike Ashley owns a vast retail portfolio and, in line with Frasers Group’s elevation strategy, which is designed to make the business more upmarket, has been expanding the luxury part of its business.
It has been rolling out stores for Flannels, the multi-brand designer retailer that it acquired fully in 2017, which now trades from more than 40 stores.
However, it added value online retailer Studio Retail Group to its stable last month when it bought the business out of administration.
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