Frasers Group, the UK retailer controlled by Mike Ashley, has acquired an 8.8 per cent stake in US sportswear company Under Armour, according to a regulatory filing dated 1 October, as the group expands its international retail holdings.

Frasers acquired 16.6 million Under Armour shares, making it one of the sportswear company's largest shareholders. The holding was worth about $80 million based on the price reported by City AM.

Under Armour has struggled since its shares peaked in 2015 following an unsuccessful expansion into athleisure clothing, with the stock closing at $4.88 on Tuesday. The Baltimore-based company reported a 3 per cent fall in revenue to $1.1 billion for the three months to the end of June, with weaker North American performance contributing to the decline.

Under Armour founder and chief executive Kevin Plank has been attempting to revive the business by simplifying its operations and increasing sales of premium products at full price. Plank told Footwear News that Frasers' investment was welcome, saying: “We value their support and remain focused on executing our strategy and creating long-term value for all shareholders.”

Frasers' investment comes as Ashley's group continues to build positions across international fashion and sportswear companies. City AM reported that Frasers has increased its exposure to Burberry from 4.2 per cent to 6.3 per cent through put options, giving it the right to buy the shares at a fixed price.

Frasers has been expanding beyond its traditional Sports Direct base through acquisitions and strategic investments, including its purchase of US luxury retailer The Webster and UK department store Harvey Nichols. In June, it launched a hostile takeover bid for Australian footwear retailer Accent Group after building a sizeable stake in the company.

The group has established a new Frasers Group Luxury division encompassing Flannels, Harvey Nichols, The Webster and its investments in Burberry and Mulberry. Chief executive Michael Murray said the group wanted to expand its luxury presence through “organic expansion, acquisitions, and strategic investments”.

Frasers' international expansion has contributed to rising group revenue, which increased 8.7 per cent to £5.3 billion in the year to 26 April, while international revenue grew 59.2 per cent. The Under Armour investment extends that strategy into a US sportswear company facing a significant turnaround challenge.

---