On July 10, Frasers Group, the UK’s largest sporting goods retailer, announced that it has expanded its investment in German-born fashion brand Hugo Boss.
Frasers Group currently owns 5,627,661 shares of common stock, constituting 7.99% of Hugo Boss’s total shares. Additionally, through the sale of put options, they hold 9,721,000 shares of common stock, representing 13.81% of Hugo Boss’s total share capital.
As a result, Frasers Group’s maximum total net acquisition exposure to Hugo Boss, considering the value of the common stock holdings as of the closing price on July 10, 2024, is approximately €490 million (£415 million).
Earlier this year, Frasers Group gradually sold its shares in Hugo Boss, reducing their value from approximately £770 million to around £580 million.
However, in light of the recent decline in Hugo Boss’s stock price, the group has deemed new stock purchases a rational investment. At the beginning of 2024, Hugo Boss’s stock was trading at around €69 per share, but it has since fallen to approximately €39 (a drop of about 40%), allowing the group to acquire shares at a lower price than before.
Frasers Group has made strategic investments in various companies in the past, and the increased investment in Hugo Boss is part of the company’s efforts to further strengthen its influence in the luxury fashion market.