Frasers Group is building a 6% stake in Puma as Mike Ashley aims to turn around the struggling sportswear brand.

Mike Ashley’s retail empire has added another high-profile investment to its portfolio after his Frasers Group bought almost 6 per cent of German sportswear brand Puma.

A German stock market filing revealed that the owner of Sports Direct, Flannels and House of Fraser now controls a 5.77% stake in Puma. The revelation sparked an immediate reaction in the market, sending Puma shares up nearly 10 percent as investors interpreted the move as a possible vote of confidence in the struggling brand.

The investment makes Frasers Group the second largest shareholder in Puma, just weeks after Chinese sportswear giant Anta Sports agreed to acquire a 29.1 percent stake in the business for €1.5 billion from the French billionaire Pinault family.

Frasers’ position is reportedly consolidated through a series of put option agreements linked to Puma shares, a financial strategy that allows the group to gain exposure to the company without immediately buying large shares on the open market.

The move highlights Frasers’ growing role as a strategic investor in global fashion and retail brands. Founded by Mike Ashley in 1982, the group has built a reputation for taking small stakes in companies and using their leverage to push for operational or strategic changes.

Although Ashley will step down from day-to-day leadership in 2022, the business is now run by her son-in-law, Michael Murray, who has continued the strategy of investing in key partners and competitors across the retail sector.

Puma is already a major supplier of trainers and sportswear to Sports Direct, Frasers’ flagship retail chain. Strengthening its ownership could give the British retailer more influence on future product strategy and product development.

The investment comes at a turbulent time for Puma, which has struggled to keep pace with rivals such as Nike and Adidas.

The company issued several profit warnings last year and has been undergoing a restructuring plan aimed at restoring profitability and rebuilding its brand position in the global sportswear market.

Earlier this year, Puma reported a record annual loss of 645.5 million euros and a drop in sales, forcing the company to dump its shares and announce plans to cut around 900 jobs as part of its turnaround effort.

The restructuring is being led by the company’s new CEO, Arthur Hoeld, who has revealed that the brand needs to rethink its brand strategy and landscape.

Hoeld admitted that demand for Puma shoes had fallen sharply in recent years and said the company had to “take a hard look” as it tried to regain market share.

Like many consumer brands, Puma has also been hit by broader macroeconomic pressures. Declining consumer demand in the United States, global uncertainty and trade tensions have all contributed to a challenging environment for global retailers.

Tariffs introduced during Donald Trump’s presidency have added additional costs to international supply chains, while declining consumer confidence has weighed on discretionary spending.

Despite these pressures, Puma’s share price has started to recover after falling to an almost ten-year low of around 15 Euros late last year. The stock recently closed at €22.62, helped by renewed investor interest following Anta’s investment and Frasers’ latest move.

Frasers’ stake in Puma is the latest example of the group’s aggressive investment strategy across the retail and fashion sectors.

In recent years the company has amassed significant stakes in major brands and retailers, including Hugo Boss, where it owns around 25 percent, Asos, Boohoo Group and Mulberry.

The group often uses these structures to put pressure on management teams and influence strategic decisions.

The long-running dispute with Boohoo, for example, saw Frasers try to replace Mike Ashley as chief executive and block the company’s attempts to rebrand its business as Debenhams.

Similarly, Frasers recently increased its position in Asos and voted against all board decisions at the online retailer’s annual meeting, indicating dissatisfaction with its performance and strategy.

Frasers’ new investment comes shortly after Anta Sports’ historic purchase of Puma from the Pinault family, which has been the sportswear company’s largest shareholder for many years.

Anta said the deal is part of its broader strategy to expand its international product portfolio and strengthen its position in the global sportswear market.

The company described the acquisition as “a major step forward in our strategy of a single-minded, multi-brand global brand”, although it said it had no immediate plans to launch a full takeover bid for Puma.

Founded in 1991, Anta has quickly grown into one of the largest groups in the world of sportswear and already owns several global brands, including outdoor clothing company Jack Wolfskin.

With Anta and Frasers now holding a majority stake, analysts expect Puma’s ownership structure to be further explored.

The presence of two powerful shareholders may change the company’s direction, especially if they seek changes in product development, distribution strategies or management structures.

For Frasers, the investment reinforces its broader strategy to build impact across the retail ecosystem, strengthening relationships with key brands while positioning itself to benefit from any recovery in the sportswear market.

Whether the involvement leads to a deeper partnership with Puma or the involvement of active shareholders remains to be seen, but the move shows that Mike Ashley’s retail empire continues to expand its influence beyond the British high street.