Key facts
- Frasers Group acquired 8.78% of Under Armour's Class A shares.
- The stake is worth approximately $77 million at $4.62 per share.
- Under Armour shares have lost nearly 90% of their value since peaking in April 2016.
- Kevin Plank, founder and CEO of Under Armour, welcomed Frasers Group as a strategic shareholder.
- Plank retains control of Under Armour through Class B shares, which hold 65% of voting power.
- Frasers Group previously disclosed put options over 4.2% of Burberry shares in July.
Mike Ashley's Frasers Group has acquired a significant stake in the struggling American sportswear brand Under Armour, signaling a continued strategy of investing in distressed companies. The filing with the U.S. Securities and Exchange Commission reveals Frasers Group holds 8.78% of Under Armour's Class A shares, a position valued at approximately $77 million based on Monday morning's trading price of $4.62 per share.
Under Armour shares have experienced a dramatic decline, losing nearly 90% of their value since peaking at $45.41 in April 2016. The brand has faced intense competition from established players like Nike and Adidas, as well as newer labels. Founder Kevin Plank, who returned as CEO in 2024, acknowledged the investment, stating, "We are pleased to welcome Frasers Group as a strategic shareholder in Under Armour, joining other significant long-term shareholders." Plank emphasized that the stake does not alter the company's leadership, as he retains control through Class B shares that carry the majority of voting power.
This investment aligns with Frasers Group's recent pattern of acquiring stakes in companies facing difficulties. Earlier this year, Frasers took a 5.77% stake in Puma and disclosed put options on 4.2% of Burberry shares. The group also purchased the loss-making Harvey Nichols chain. Frasers' strategy often involves buying undervalued assets to potentially secure supply and distribution terms.