Strategic investment: Frasers acquires 16.9% of Asos

The British conglomerate Frasers is reinforcing its support for Asos. Through a series of strategic maneuvers, it has successfully acquired a 16.9% stake in the UK-based online fashion firm, Asos. Frasers has incrementally increased its ownership over four successive occasions to reach this percentage. The most notable transaction prior to this recent one occurred in June, when it acquired a 9% stake in the company.

The company has solidified its position following Asos’ announcement of an 8% decline in sales and £218.8 million in losses during the first half of the year. The fashion company attributes these figures to a challenging sales environment. Additionally, several measures implemented throughout 2023 have contributed to this situation. At the beginning of the year, Asos reduced its discounts and offerings in order to address excess inventory.

Frasers has also increased its stake in Boohoo in recent weeks, elevating its ownership in the company to 7.8%. By June, it had already acquired 5% of the total shares. The group also holds interests in other companies such as Hugo Boss. However, its approach to the German company has been different; it reduced its ownership to 3.9% after multiple increases in 2022.

Operation Elevation The strategy of Frasers Group, a British fashion company, is encapsulated in its strategic plan called Elevation. Through this plan, according to CEO Michael Murray, the company intends to reshape its acquisition model to be more selective.In recent months, the company has expanded its portfolio through acquisitions such as Philip Browe, Topgrade Sportswear, and Cricket, all of which were previously owned by JD Sports. At the close of the fiscal year 2022, the company reported sales exceeding £5.6 billion, representing a 16% growth. Net income doubled from the 2021 figure, reaching £501 million after taxes.

Frasers Group is under the control of Mike Ashley, who founded the company in 1982 in the UK under the name Sports Direct. In 2019, the company changed its name to Frasers Group after acquiring control of the House of Fraser department stores.

The final results of 2022 confirm the trend already indicated by the first half of the previous year, during which the group achieved a 12.7% increase in revenue, culminating the period with profits of nearly £194 million.