British retail group Frasers has increased its stake in online fashion retailer ASOS to 19.89%, ASOS said on Tuesday..
Frasers, formerly known as Sports Direct, acquired a 5.07% stake in the fast-fashion e-tailer in April and raised it to 11.76% in early October. The group now has the second-largest stake in ASOS, behind Swedish fund manager Christer Olsson’s 28.5%..
The move comes as ASOS struggles with inflationary pressures and supply chain disruptions. The company has issued two profit warnings in the past six months, and its share price has fallen by more than two-thirds this year..
Frasers has said it is a long-term investor in ASOS, and that it believes the company has a strong future. However, there has been speculation that the group could eventually try to acquire ASOS outright..
ASOS was founded in 1999 and is now one of the world’s largest online fashion retailers. The company sells a wide range of clothing, footwear, and accessories for men and women. In the year to August 31, ASOS reported revenue of £3.9 billion and profit before tax of £142.1 million..
Frasers is a British retail group with a portfolio of over 50 brands, including Sports Direct, Flannels, and House of Fraser. The group is owned by Mike Ashley, who is one of the richest men in the United Kingdom..
The increase in Frasers’ stake in ASOS is a significant development, and it will be closely watched by the retail industry. It remains to be seen what Frasers’ intentions are for ASOS, but it is clear that the group is betting on the future of online fashion retail..
