Frasers Group's latest purchase of Hugo Boss shares, taking its stake to 47.9%, signals a deeper push into the European luxury market that Canadian investors are watching closely.
The retailer, owned by Mike Ashley, bought 12,157,598 shares at €38.10 each, a transaction worth more than €463 million (£396 million). The purchase brings the total holding to just under half of the German fashion house, valuing the stake at over €1 billion.
Earlier this year, Hugo Boss's board rebuffed an initial £1.7 billion offer, calling it inadequate and urging shareholders to reject the bid. Analysts noted the modest four‑percent premium offered by Frasers Group and saw limited upside for the target.
In parallel, Frasers Group acquired the struggling department‑store chain Harvey Nichols for £40 million and plans to merge it with its upscale Flannels brand. Chief executive Michael Murray described the move as a chance to revive an iconic British institution, even if it means short‑term downsizing.
After the failed takeover, the group has been positioning Michael Murray, Ashley's son‑in‑law, for the chief‑executive role at Hugo Boss. The strategy mirrors a previous attempt to influence online retailer Boohoo, where Frasers Group built a 27 percent stake in 2024 but could not secure board representation.
Stephan Sturm, chairman of Hugo Boss's supervisory board, said the company appreciates the long‑term commitment of its largest shareholder. Chief executive Daniel Grieder welcomed the support as the brand pursues a turnaround amid recent profit and sales declines.