Mike Ashley's Frasers Group ups stake in Boohoo again

16th Oct 2023 07:52

(Sharecast News) - Mike Ashely's Frasers Group upped its stake in fast fashion retailer Boohoo on Monday to 15.1% from 13.4%.

Last week, the company - which owns Sports Direct, House of Fraser and Flannels, among others - increased the stake from 9.1%.

Frasers has also built stakes in Asos, AO World, Currys, N Brown and Hugo Boss.

Russ Mould, investment director at AJ Bell, noted that Boohoo shares traded at their lowest level last week since 2015.

"Boohoo has been struggling with cost pressures and weak demand, which have squeezed its margins and left the business loss-making," he said.

"Frasers loves a bargain and clearly sees an opportunity to have influence over Boohoo's strategy, possibly as another avenue to sell its range of athleisure brands.

"But equally, Frasers might be viewing this simply as a way to make a quick buck - a chance to buy shares on the cheap and then flip them should see the online retailer be successful in its turnaround efforts."