Frasers Group, the UK-based retail conglomerate controlled by billionaire Mike Ashley, acquired an 8.78% stake in Under Armour, according to an October 1 regulatory filing. [4, 5, 6] The stake consists of 16.6 million Class A shares in the American sportswear brand. [4, 5]
The investment aligns with Frasers’ strategy of acquiring stakes in sportswear and fashion brands facing market headwinds. [4] Under Armour shares have been trading near historic lows after the company lowered its fiscal-year guidance. [4, 5] A full takeover is considered unlikely because Under Armour founder Kevin Plank retains approximately 65% of the company’s voting power. [4, 5, 6] The stake could nevertheless give Frasers a strong voice and potential influence over the brand’s direction. [4, 5, 6]