Frasers Group has increased its stake in Hugo Boss following a fall in the luxury fashion brand’s share price over the course of the year.

Mike Ashley’s retail group, which also owns House of Fraser and Sports Direct, confirmed that it now holds 1.7 million shares of common stock, representing 2.47% of Hugo Boss's total share capital, and 9.8 million shares through put options, representing a 13.92% stake.

Following the latest investment, Frasers’ exposure to Hugo Boss has climbed to approximately €360m (£305m), according to the closing share price on 29 May.

Lead equity analyst at Hargreaves Lansdown, Sophie Lund-Yates, commented: “There are inevitably questions surrounding the motivations for this, especially considering Frasers already has an eclectic mix of retailers under its roof.

“Should a takeover offer be brewing, Frasers investors will want to see an iron clad plan for these assets – which is the element that’s been sorely missed from previous acquisitions. Of course, there’s no guarantee a buyout is the endgame, but it’s something the market will be watching with keen interest.”

---