Frasers Group increases Asos stake the for third time in 2 weeks



Frasers Group has increased its shareholding in Asos once again, as speculation about a takeover continues.

The group, owned by retail tycoon Mike Ashley, upped its stake in the online-only retailer from 9.9% to 10.6%.

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Asos features in 2023 RetailX European Fashion report

The group’s recent rise of its stake in Asos comes amid rumours of a potential battle for control of the company, which returned to profitability in its latest figures, despite a slump in sales.

In the three months ended 31 May 2023, the retailer saw a 14% drop in sales to £858.9 million in its latest quarter, claiming the drop in revenues is a reflection of “deliberate actions on capital allocation to improve profitability”.

As a result, the company saw active customers, down by 800,000 from the 24.9 million reported in H1 2023, reflecting a continued “focus on improving the profitability of sales over the pursuit of growth at any cost.”

“We continue to focus on making Asos the best possible destination for our fashion-loving customers,” CEO José Antonio Ramos Calamonte said.

“At the same time, we are delivering on our plan to turn the business around: to right-size our stock; to generate cash; to reduce our net debt; and to structurally improve our profitability.”

Meanwhile, it was that Turkish fast fashion retailer Trendyol, which is backed by Chinese giant Alibaba, was considering a £1 billion bid for Asos, which is currently valued at around £420 million.

However, it is understood that no active talks are underway between the two brands.

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15 Sep 2023

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