Frasers Group takes 4.2% stake in Burberry

Published Jul 28, 10:21 PM UTC

Mike Ashley's Frasers Group has acquired a 4.2% stake in Burberry through put options on 15 million shares, according to a regulatory filing. The move comes after Frasers made a surprise takeover bid for Hugo Boss last month. Burberry has shown signs of a rebound, with first-quarter sales rising 5% to 455 million pounds, driven by Gen Z demand for trenchcoats, scarves, and handbags. Comparable retail sales grew 5%, marking the fourth consecutive quarter of growth. CEO Josh Schulman credited the Burberry Forward strategy for attracting a broad range of luxury customers. Frasers, led by CEO Michael Murray, owns retailers including Sports Direct and Flannels, and holds a 26% stake in Hugo Boss.