Frasers Group Acquires 8.8% Stake in Under Armour

Frasers Group has acquired an 8.8% stake in US sportswear company Under Armour, adding to its portfolio of investments in international consumer and sports brands.

The Sports Direct owner holds approximately 16.6 million Under Armour Class A shares, with an estimated market value of around US$80 million at the time of the disclosure.

The investment comes during Under Armour’s efforts to rebuild its brand positioning, simplify operations and reduce dependence on promotional sales, following a period of difficult trading.

Frasers has pursued strategic investments alongside its international retail expansion and also has exposure to Puma.

The shareholding creates another potential connection between a major global sports retailer and an established performance apparel manufacturer, although no takeover proposal has been announced.

The position was disclosed in a US regulatory filing dated 1 October, which identified Frasers' holding of Under Armour Class A stock. The filing recorded 24 September as the date on which the relevant disclosure threshold was crossed. The stake does not confer control of Under Armour.

Frasers has developed a business model combining retail distribution with selective shareholdings in consumer brands. These positions can provide exposure to manufacturers whose products it sells, while potentially opening discussions about distribution, merchandising and long-term commercial cooperation.

Under Armour has been working through a business reset focused on its product assortment, full-price selling and operating efficiency. The company's performance and any recovery in demand will determine how its shares develop, independently of Frasers' position.

The investment should not be treated as an announced merger, acquisition of control or new distribution agreement. No such transaction was disclosed alongside the shareholding. For now, the confirmed development is the scale of Frasers' equity interest in the US apparel group.