Frasers Group Increases Stake in Burberry to 7.42 Percent

Frasers Group has increased its stake in Burberry to 7.42 percent through put options, marking its second purchase within a week. The move accompanies the rollout of a new luxury division, Frasers Group Luxury, designed to expand the retail empire’s high-end portfolio across the UK and US markets.

Retail conglomerate Frasers Group has expanded its financial holding in British fashion house Burberry, lifting its stake from 6.32 percent to 7.42 percent according to a stock market filing. This latest acquisition follows a previous purchase disclosed at the end of September, when the group raised its stake to 6.32 percent from 4.16 percent. The shares are held entirely through sold put options with expiration dates spanning October 2026, March 2027, and September 2027, giving the company the right to buy stock at fixed prices.

The increased investment coincides with a broader push into high-end retail by the company controlled by Mike Ashley. Alongside its maneuvers in Burberry, the retail group has also built an 8.8 per cent stake in American athleisure brand Under Armour, purchasing approximately millions of shares valued at roughly millions of dollars. In Germany, the firm holds a nearly 50 percent stake in Hugo Boss, with Frasers Group chief executive Michael Murray serving as chairman of the supervisory board. Robert Palmer has also joined the supervisory board alongside Murray, having served as CEO of Frasers Group Financial Services Limited since 2022. Operating under the leadership of a 73-year-old majority owner known for his pugnacious leadership and bargain-priced acquisitions, the parent company of Sports Direct, Evans Cycles, and Savile Row tailor Gieves & Hawkes reported strong retail metrics for its fiscal year ending in April. For that period, retail revenue reached 5,149.5 million pounds, representing an 8.3 percent increase over the previous year, while international sales for the group surged 59.2 percent and consolidated profit for the entire group reached 386.3 million pounds.

Frasers Group Increases Stake in Burberry to 7.42 Percent — Photo: Traders Union

Launching the Frasers Group Luxury Division in Paris

The newly minted Frasers Group Luxury division consolidates several prominent retail banners and strategic investments under a single corporate umbrella.

The division brings together UK-based Flannels and Harvey Nichols alongside US-based luxury retailer The Webster. In addition to these retail store networks, the portfolio encompasses strategic shareholdings and investments in Mulberry, Burberry, Hugo Boss, and Hulcan’s Mile. Michael Murray noted that the high-end sector has served as a core pillar for the empire for over a decade, originating with the acquisition of Flannels in 2012 and growing into an operation generating more than £1 billion in annual revenue.

“Luxury has been a core pillar of Frasers Group for more than a decade, starting with FLANNELS and growing into a profitable £1b-plus luxury ecosystem in just ten years. With over 100 stores across the UK and US, we’ve built the expertise, scale, and brand relationships to support our next phase of growth.”

Michael Murray, Frasers Group chief executive

Frasers Integrates Harvey Nichols After Matches Fashion Collapse

The formation of the luxury arm follows a turbulent period for high-end retail acquisitions. Frasers acquired department store operator Harvey Nichols out of administration earlier in the year following its financial collapse, bringing a business boasting nearly two centuries of heritage into the ecosystem. The group also acquired Matches Fashion in December 2023, though it subsequently placed the business into administration in March 2024 after determining that the necessary restructuring required too many changes, leaving nearly 1000 creditors—including Prada, Burberry, and Gucci—unpaid to the tune of nearly £50m before Frasers later bought back certain intellectual property assets from the administrators in April 2024.

The expansion has not been without commercial friction. Executives have emphasized ongoing collaboration with longstanding brand partners, including Christian Louboutin, whose first worldwide shop-in-shop opened inside Harvey Nichols in 2007. Leadership also highlights international retail growth, noting that The Webster joined the group a year ago under founder Laure Heriard Dubreuil, providing a direct entry point into the US luxury market across estates in Bal Harbour, South Beach, and New York.

“As we mark one year since The Webster joined Frasers Group, I feel tremendous excitement about what lies ahead. We have already accomplished so much together, and the group’s support is helping bring the vision I have long held for The Webster to life on a greater scale.”

Laure Heriard Dubreuil, The Webster founder

Burberry Shares Rise as Frasers Expands Regional Reach

Burberry chief executive Joshua Schulman acknowledged the strengthening ties, praising the retail group’s footprint in regional British cities. Burberry's share price traded up 1.9 percent to 10.44 pounds following the disclosure of Frasers' latest share purchase, even as the fashion house manages a broader turnaround effort under Schulman's leadership.

Frasers executives argue that their store network provides critical access to shoppers outside traditional capital cities, pointing to flagship Flannels locations in regional hubs that feature more than 80 stores across the country.

“We value Flannels as a long-standing wholesale partner. Their teams have a deep understanding of their customers, and their store network helps us reach Burberry customers across the UK, particularly in areas where we do not have directly operated stores.”

Joshua Schulman, Burberry chief executive