British billionaire's retail company builds stake in Puma
By Nora Redmond
Shares in Puma climbed about 7%.
British retail giant Frasers Group has increased its stake in German sportswear maker Puma (DE:PUMA), one of Europe's worst-performing companies last year.
Puma's stock rose more than 7% shortly after noon in Frankfurt Thursday, after it was revealed in a stock-exchange filing that Frasers (UK:FRAS) had built a 5.77% stake in the company. The retailer's stock edged 0.8% higher.
Frasers, founded by billionaire Mike Ashley, has entered into a series of put options on shares, worth now close to EUR23 ($26.70) each. It acquired 246,000 shares of Puma, which are registered under Ashley's name - in line with German listing rules - as he is the biggest shareholder in Frasers. The move means Frasers will now become Puma's second-biggest shareholder, according to LSEG data.
Puma has been struggling against rivals like Nike (NKE) and Adidas (XE:ADS). Shares in the company have tumbled about 20% over the past year, bringing its market cap down to EUR3.18 billion and making it one of the worst-performing stocks on Europe's Stoxx 600 index. For 2025, Puma reported a EUR645 million decline in sales, which the company attributed to a "strategy reset." It also posted a significant reduction in profit margin.
Puma has been attempting a transition under CEO Arthur Hoeld, who has been leading the company since July. It announced last year that it would be cutting 900 jobs by the end of 2026.
Frasers joins Anta Sports, a Chinese sporting-apparel corporation, in its shift into Puma. Anta will soon become the group's biggest shareholder after buying a 29% stake for EUR1.5 billion in January from French investment firm Artemis SAS, which is owned by the Pinault family.
Puma did not respond to MarketWatch's request for comment. Frasers declined to comment.
-Nora Redmond
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(END) Dow Jones Newswires
03-05-26 0812ET
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