Mike Ashley’s Frasers Group has revealed a stake of just over 4 percent in British luxury fashion brand Burberry, marking the retail group's continued expansion into the high-end market. The holding, disclosed late on Tuesday, represents an increase from Frasers' previous position of approximately 3 percent earlier in the month.

Frasers, which owns brands including Sports Direct, House of Fraser, Flannels, and Savile Row tailor Gieves & Hawkes, currently holds a 37 percent stake in Mulberry and is pursuing full ownership of fashion label Hugo Boss, with an existing holding exceeding 30 percent. The group has built its Burberry interest primarily through the sale of put options—financial agreements giving the right to purchase shares at predefined prices—which would, if exercised, position Frasers among the top ten largest shareholders in the luxury brand.

Burberry has faced challenges in recent years with sluggish sales, but under CEO Joshua Schulman a turnaround effort appears to be gaining traction. Earlier this month, the company reported growth across all its divisions for the first time since 2023. Burberry’s latest advertising campaign features US model Kendall Jenner.

Frasers is known for strategic minority investments in rival retailers, often leveraging its shareholdings to apply pressure for operational or managerial changes. Previous targets have included Boohoo Group, Mulberry, AO World, and Scandinavian sporting goods retailer XXL. The group is also reportedly exploring leadership changes at Hugo Boss, with Michael Murray—Ashley’s son-in-law—being considered for the chief executive role, as part of a broader effort to shift the business towards a more upscale market position.

Following the disclosure of Frasers’ increased interest, Burberry’s shares closed up 5 percent at £11.40, while Frasers’ stock gained 2.5 percent, closing at £7.99.

The move signals Frasers' ongoing ambition to expand its footprint in the luxury sector through both investment and active involvement in company governance. Meanwhile, Burberry continues to navigate efforts to stabilize and grow amid shifting consumer trends and competitive pressures in the global fashion industry.