(Alliance News) - 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 EUR47.90 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 GBP305 million, based on the EUR46.88 closing price of Hugo Boss shares on Wednesday.

Frasers shares were down 1.1% at 865.50 pence each in London on Friday morning.

By Hugh Cameron, Alliance News reporter

Comments and questions to newsroom@alliancenews.com

Copyright 2024 Alliance News Ltd. All Rights Reserved.