Mike Ashley’s retail empire has added another high-profile investment to its portfolio after Frasers Group quietly built a nearly 6 per cent stake in German sportswear brand Puma.
Regulatory filings with the German stock exchange revealed that the owner of Sports Direct, Flannels and House of Fraser now controls a 5.77 percent stake in Puma. The disclosure sparked an immediate market reaction, sending Puma shares up nearly 10 percent as investors interpreted the move as a potential vote of confidence in the struggling brand.
The investment makes Frasers Group Puma’s second-largest shareholder, just weeks after Chinese sportswear giant Anta Sports agreed to buy a 29.1 percent stake in the company from the French billionaire Pinault family for 1.5 billion euros.
Frasers’ position was reportedly built through a series of put option agreements linked to Puma shares, a financial strategy that allows the group to gain exposure to the company without immediately purchasing large blocks of shares on the open market.
The move underlines Frasers’ increasingly active role as a strategic investor in global fashion and retail brands. Founded in 1982 by Mike Ashley, the group has developed a reputation for taking minority stakes in companies and using their influence to drive operational or strategic change.
Although Ashley stepped down from operational leadership in 2022, the company is now led by his son-in-law Michael Murray, who continues the strategy of investing in key partners and competitors across the retail sector.
Puma is already a key supplier of trainers and sportswear to Sports Direct, Frasers’ flagship retail chain. Increasing its stake could give the British retailer additional influence over the brand’s future strategy and product development.
The investment comes at a turbulent time for Puma, which is struggling to keep up with rivals such as Nike and Adidas.
The company issued several profit warnings last year and underwent a restructuring program aimed at restoring profitability and rebuilding its brand position in the global sportswear market.
Earlier this year, Puma reported a record annual loss of 645.5 million euros and falling sales, forcing the company to scrap its dividend and announce plans to cut around 900 jobs as part of its turnaround efforts.
The restructuring is being led by the company’s new chief executive Arthur Hoeld, who has signaled that the brand needs to fundamentally rethink its product strategy and global positioning.
Hoeld has acknowledged that demand for Puma shoes has waned significantly in recent years and said the company needs to “take a hard look at itself” as it tries to regain market share.
Like many consumer brands, Puma has been hit by broader macroeconomic pressures. Slowing consumer demand in the United States, geopolitical uncertainty and trade tensions have all contributed to a challenging environment for global retailers.
Tariffs imposed during Donald Trump’s presidency have added costs to international supply chains, while weaker consumer confidence has weighed on discretionary spending.
Despite these pressures, Puma’s share price has begun to recover after falling to a near decade low of around 15 euros late last year. The shares recently closed at €22.62, supported by renewed investor interest following the Anta investment and Frasers’ recent move.
Frasers’ investment in Puma is the latest example of the group’s aggressive investment strategy across the retail and fashion sectors.
In recent years the company has acquired significant stakes in several major brands and retailers, including Hugo Boss, where it holds around 25 percent shares, Asos, Boohoo Group and Mulberry.
The group has often used these missions to put pressure on management teams and influence strategic decisions.
For example, in a long-running dispute with Boohoo, Frasers sought to install Mike Ashley as CEO and block the company’s efforts to rename its holding company Debenhams.
Likewise, Frasers recently increased its position in Asos and voted against all board decisions at the online retailer’s annual general meeting, expressing dissatisfaction with its performance and strategy.
Frasers’ new investment comes shortly after Anta Sports’ landmark acquisition of a 29.1 per cent stake in Puma from the Pinault family, which was the sportswear company’s largest shareholder for many years.
Anta said the deal is part of its broader strategy to expand its portfolio of international brands and strengthen its position in the global sportswear market.
The company described the acquisition as “a major step forward in our single-focus, multi-brand globalization strategy,” although there were no immediate plans to make a full takeover bid for Puma.
Founded in 1991, Anta has quickly become one of the world’s largest sportswear groups and already owns several global brands, including outdoor clothing company Jack Wolfskin.
With Anta and Frasers now holding significant stakes, analysts expect Puma’s ownership structure to come under increasing scrutiny.
The presence of two powerful strategic shareholders could change the direction of the company, especially if they push for changes in product development, sales strategies or management structures.
For Frasers, the investment strengthens its broader strategy to build influence across the global retail ecosystem, strengthening relationships with key brands while positioning itself to benefit from a recovery in the sportswear market.
Whether the investment leads to closer collaboration with Puma or more active shareholder involvement remains to be seen, but the move signals that Mike Ashley’s retail empire is expanding its influence far beyond the UK’s high streets.
