Frasers Group has acquired an 8.8% stake in US sportswear business Under Armour as the UK retail group expands its portfolio of investments in global sporting brands.<\/p>\n
The Derbyshire-based group holds around 16.6 million Under Armour shares, according to a filing with the US Securities and Exchange Commission. The holding was worth approximately $80.1m based on Under Armour\u2019s share price at the end of Tuesday\u2019s trading.<\/p>\n
The investment adds to Frasers\u2019 recent activity in the sportswear sector, following its stake of almost 6% in German sports brand Puma.<\/p>\n
Frasers has also expanded its international retail interests through acquisitions, including a majority stake in US luxury retailer The Webster and the purchase of Nordic sporting goods retailer XXL.<\/p>\n
Under Armour fits with Frasers\u2019 growing focus on brands undergoing periods of change. The Baltimore-based business has seen its share price fall significantly from its previous peak and downgraded its outlook in August, citing challenging consumer demand and forecasting lower sales across several global markets.<\/p>\n
Founded by Kevin Plank, Under Armour has been cutting back its product range and reducing discounting as it looks to strengthen its core brand and improve performance. It has also undergone changes to its high-profile sporting partnerships, including ending its relationship with basketball star Stephen Curry.<\/p>\n
For Frasers, the investment adds to a much broader business than the Sports Direct operation that made the group a familiar name on UK high streets.<\/p>\n
Founded by Mike Ashley in 1982 as a single sports and ski shop in Maidenhead, the business grew through a combination of organic expansion and acquisitions. It became Sports Direct International before adopting the Frasers Group name in 2019, following its \u00a390m acquisition of House of Fraser out of administration the previous year.<\/p>\n
The group has since pursued what it calls its Elevation Strategy, aimed at moving beyond its traditional value-led sports retail model through premium retail, digital investment, international expansion and closer relationships with major global brands.<\/p>\n
Frasers now operates across sports retail, premium lifestyle and luxury, with brands and businesses including Sports Direct, Evans Cycles, Everlast Gyms, Flannels, Jack Wills and USC. It also owns sports brands including Slazenger, Lonsdale and Karrimor.<\/p>\n
The group has continued to build its luxury interests, including the acquisition of department store group Harvey Nichols and a majority stake in US luxury retailer The Webster.<\/p>\n
Its activities also extend into property and financial services, with ownership of major UK shopping destinations and its Frasers Plus consumer credit platform.<\/p>\n
Chief executive Michael Murray took over from founder Mike Ashley in 2022 and has continued the group’s strategy of expanding its brand portfolio and international presence.<\/p>\n
Frasers has a history of taking minority positions in retailers and brands, sometimes using those investments as a platform for deeper commercial relationships or attempts to increase its influence.<\/p>\n
It previously took an interest in US sporting goods retailer Dick\u2019s Sporting Goods through a derivatives contract and acquired outdoor retailer Eastern Mountain Sports and discount chain Bob\u2019s Stores out of bankruptcy in 2017, although it later exited those businesses.<\/p>\n
The group has more recently focused much of its acquisition activity on the UK and Europe, but has continued to build its presence in the US through investments including The Webster.<\/p>\n
Sports Direct already sells Under Armour products through its UK stores and online operation, giving the latest investment an existing commercial connection between the two businesses.<\/p>\n","protected":false},"excerpt":{"rendered":"
Sports Direct owner is expanding its international brand portfolio with an investment in Under Armour<\/p>\n","protected":false},"author":266702,"featured_media":2115616,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[53262],"coauthors":[127717],"class_list":["post-2115615","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business-news","tag-derbyshire","tag-top-story"],"yoast_head":"\n