Frasers ups stake in Asos to over 10%
The news comes as the embattled online retailer was the target of a £1bn pound takeover bid from Alibaba-backed Turkish retailer Trendyol in December of last year
Mike Ashley’s Frasers has increased its stake in online fashion retailer asos for the third time in two weeks.
Frasers has increased its holding to 10.6%, fueling further speculation of a possible takeover offer after beginning last week with a 7.4% stake.
Frasers is currently Asos’ fourth largest shareholder having originally increased its holdings to over 5% back in October of last year.
The news comes as the embattled online retailer was the target of a £1bn pound takeover bid from Alibaba-backed Turkish retailer Trendyol in December of last year.
Earlier this week Asos announced that it had returned to profitability after its EBIT rose more than £20m year-on-year for the three months ended 31 May.
The earnings increase comes despite its revenue dropping 11% from £964m down to £859m in the same period.
The company stated that this reflected its deliberate actions on capital allocation to improve profitability showing around £200m of profit optimisation and cost savings.
Sales in the UK were also down from £432m in 2022 to £370m in 2023, a decline of 14%.
Asos now believes that it is on-track to deliver its adjusted EBIT guidance of between £40-60m in H2 FY23.
