Frasers Group Takes 8.78% Under Armour Stake, but Founder Control Limits Bid Hopes

Frasers Group (LON: FRAS), the Sports Direct owner linked to Mike Ashley, has disclosed an 8.78% stake in US sportswear maker Under Armour (NYSE: UAA). Frasers has not stated its intent. Under Armour shares are up since the end of September, but those moves cannot be attributed to the stake.

Under Armour’s Class A shares closed yesterday at $4.88, up 9.4% from $4.46 on Wednesday last week. They remain about 26% below the $6.58 close on the 1st of July. Frasers closed yesterday at 820p and was about 847.5p, up 3.4%, in early trade today, on a delayed quote.

According to a Schedule 13G filing dated the 1st of October, reported by SGB Media, Frasers holds about 16.6m Class A shares, or 8.78%. A Schedule 13G is the US form for disclosing a large holding.

The shares rose 4.0% on Thursday, the day Nike reported results, so that gain cannot be attributed to the filing.

Frasers has not commented on the reasoning behind the the acquisition, so the strategy is open to interpretation. It could be seeking leverage for change, or a way to sell Under Armour product through its stores. It may also be looking to tighten supplier ties and prepare larger deals.

Frasers has a record of taking minority positions in brands under pressure, including nearly 6% in Puma in March, alongside holdings in Burberry, ASOS and Boohoo. It has raised Hugo Boss to 47.89% through a voluntary bid that Hugo Boss urged holders to reject, and an Accent Group offer followed a rejected 22.9% stake.

Under Armour differs because Plank is understood to control about 65% of the voting interest. The company cut guidance in August and has guided to a mid-single-digit revenue decline for fiscal 2027.

Given Plank’s voting control, either reading looks more consistent with an investor or supplier relationship than a bid. The shares are still well below early July levels.