Frasers Group has taken an 8.8% slice of Under Armour. In a filing dated Oct. 1, the company said it owns roughly 16.6 million shares, a holding worth about $80.1 million when marked to Tuesday's close. It fits a broader push into the US retail scene for the Sports Direct owner. Sports Direct already sells Under Armour gear in the UK in stores and online, and the group has talked for years about tightening that relationship.
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Frasers has been steadily collecting stakes in brands that are lagging or trying to turn a corner. It recently revealed a position just shy of 6% in Puma and bought Nordic sporting-goods chain XXL last year. Last year, it secured a controlling interest in The Webster, a U.S. luxury fashion retailer founded in Miami.
The group, controlled by Ashley, is known for building positions and sometimes agitating for change. Chief Executive Officer Michael Murray, Ashley's son-in-law, was appointed chairman at Hugo Boss AG after Frasers' run at a full takeover fell just short. A decade ago, when it was still called Sports Direct, the company took exposure to Dick's Sporting Goods via derivatives rather than shares, but closed the trade after a brief stint. Sports Direct also picked up Eastern Mountain Sports and Bob's Stores out of Chapter 11 in 2017 and exited that business in 2022.
Under Armour has had a rough run, with the stock down about 90% from a peak a little over ten years ago. In August, the Baltimore-based retailer cut its outlook, citing a "challenging consumer demand environment," and said it expects sales to fall across most of its global markets. Founder and CEO Kevin Plank holds majority voting control, while the company pares back product lines, scales down discounting, and aims to revive its core brand following a split with NBA star Stephen Curry.
In London, Frasers shares climbed up to 2% in early trading after the disclosure and had gained 21% for the year through Tuesday's close. For everyday investors, the takeaway is simple to track: a seasoned operator is buying into a brand that needs fixing. Whether that lifts your holdings depends on how well the turnaround plays out.
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