Frasers Group has increased its exposure to Burberry to 4.16 per cent, making it the company’s third-largest shareholder.
A regulatory filing revealed the Sports Direct owner had expanded its financial interest in Burberry from 3.05 per cent on 24 July.
The entire position is held through sold put options linked to Burberry shares, rather than through a direct shareholding, and represents 15 million voting rights in the British luxury brand.
This places Mike Ashley-controlled Frasers behind only MFS Investment Management and BlackRock Investment Management UK among Burberry’s largest shareholders, according to LSEG data.
The retail group has increasingly used strategic investments and derivatives to build exposure to fashion businesses, with its growing interest in Burberry coming as it pursues takeover bids for German fashion giant Hugo Boss and Australian footwear retailer Accent Group.
Frasers withheld its full-year outlook earlier this month, saying uncertainty surrounding the two potential acquisitions made it difficult to provide reliable guidance for its 2027 financial year.
The retailer is bidding for the remaining shares in Hugo Boss that it does not already control, while also attempting to acquire Accent Group, which operates footwear chains including The Athlete’s Foot, Hype DC and Platypus.
Burberry recently reported stronger trading in the US and China during its first quarter, although it warned that conflict in the Middle East was weighing on tourist spending across Europe. The business recorded four per cent retail sales growth at constant exchange rates during the period.
Burberry shares closed around five per cent higher following news of Frasers’ increased position, while Frasers finished the session up 2.5 per cent.
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