Ashley’s Frasers Group Acquires 8.8% Stake in Under Armour

Billionaire Mike Ashley’s Frasers Group Plc acquired an 8.8% stake in Under Armour Inc., expanding the Sports Direct owner’s investments in struggling brands and representing a fresh push into the US retail market.

Frasers holds about 16.6 million shares, according to an Oct. 1 filing with the US Securities and Exchange Commission. The stake is worth around $80.1 million, based on Under Armour’s closing share price on Tuesday.

It extends Frasers’ push into sports brands that are underperforming or going through a turnaround. It recently disclosed a stake of almost 6% in Puma SE, and acquired Nordic sporting-goods retailer XXL last year.

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Under Armour fits the pattern. The stock has slumped about 90% from a peak just over a decade ago, and the Baltimore-based retailer downgraded its outlook in August blaming a “challenging consumer demand environment.” It forecast sales would drop in most of its global markets.

Led by Chief Executive Officer and founder Kevin Plank, who has majority voting control over the company, Under Armour has been cutting product offerings and paring back discounts. It’s also seeking to revive its core brand after parting ways with NBA star Stephen Curry.

Shares of Frasers rose as much as 2% in early trading in London. They were up 21% this year through Tuesday’s close.

Controlled by Ashley, Frasers has a reputation for building up positions in retailers, sometimes sitting on a minority holding but other times pushing for change and seeking a takeover. Frasers Chief Executive Officer Michael Murray, who is Ashley’s son-in-law, was named chairman at Hugo Boss AG after the group’s bid for a full takeover fell just short.

About a decade ago, Frasers, then known as Sports Direct, took an interest in Dick’s Sporting Goods Inc. via a derivatives contract rather than a direct shareholding. At the time it said it wanted to build deeper ties with Dick’s, but it ended up only holding the position for a short while.

Sports Direct also bought US outdoor retailer Eastern Mountain Sports and discount chain Bob’s Stores in 2017 out of Chapter 11 bankruptcy, but exited the business in 2022.

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Since then, Frasers has focused more heavily on acquisitions in the UK and Europe, most recently snapping up luxury department store group Harvey Nichols. Still, last year it took a majority stake in The Webster, a US luxury fashion retailer founded in Miami.

Sports Direct stocks Under Armour products in its UK stores and online, and the company has talked about deepening its ties with the US sportswear brand for several years.