Britain’s Frasers Group, formerly known as Sports Direct, has increased its stake in online fashion retailer ASOS (LON:ASOS). The Mike Ashley-owned sportswear retailer now holds a 7.4% stake in ASOS, up from a prior stake of more than 5%.
Shares in ASOS, which have lost about 30% of its value in the past week, were trading up 9% by 1105 GMT. The increase in stake comes a week after ASOS swung to a first-half loss, hit by a squeeze on household budgets and forecast a further drop in sales.
Frasers, known for picking up stake in fellow retailers, currently owns a 2.6% stake in German fashion house Hugo Boss, according to Refinitiv data. Shares in Frasers were down 0.5%.
The move is part of Frasers’ drive into a more premium market, and is likely to be seen as a vote of confidence in ASOS despite its recent struggles.