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Frasers Group PLC on Friday said it has increased its investment in Hugo Boss AG, amid the fashion house stock’s recent decline. Frasers is a Shirebrook, England-based retailer, including Sports Direct, Flannels, and department store House of Fraser. Frasers initially acquired a 4.7% stake in the Metzingen, Germany-based fashion company in June 2020, increasing this to 34% by late 2022. Since that time, the company reduced its stake in Hugo Boss, bottoming out at 8.1% in December last year. Hugo Boss shares are down 25% over the past 12 months, currently trading at €47.90 in Frankfurt on Friday morning. Following Friday’s announcement, Frasers said it now holds 1.7 million shares of common stock in Hugo Boss, representing 2.5% of its total share capital. This is alongside 9.8 million shares Hugo Boss common stock via the sale of put options, equating to 14% of the company’s share capital. The investment, which brings its total stake to 16.4%, takes Frasers’s maximum exposure to its Hugo Boss interest to around £305 million, based on the €46.88 closing price of Hugo Boss shares on Wednesday. Frasers shares were down 1.1% at 865.50 pence each in London on Friday morning. Copyright 2024 Alliance News Ltd. All Rights Reserved.
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