Frère buys Burberry stake after recent Hugo Boss investment, shares rise
Burberry shareholders had plenty to smile about Tuesday as the the share price rose strongly on the back of news that Albert Frère had acquired 3% stake in the UK luxury firm.
The Belgian billionaire, investor and turnaround specialist bought over 13m shares through his GBL Energy Sarl holding company, helping to send the shares up almost 6% at once point to 1,763p. It was their highest level in almost two years. However, they closed up 3.66% compared to the day before at 1,726p.
Frère seems to have been on a luxury buying spree lately with German media reporting last month that he had also bought an undisclosed stake in Hugo Boss.
Although he made his fortune investing in the steel industry, he has more recent experience of clothing having bought a 3% stake in Adidas two years ago. Having helped spur a strategy shake-up at the sports giant, he later raised his stake and now holds 5%.
It is unclear exactly what Frère’s intentions are towards both Burberry and Hugo Boss. Burberry, which rebuffed a bid approach last year from sector peer Coach, had struggled last year but in January reported improving trading.
Hugo Boss also had better news on recent sales last month. However, while both firms have seen recoveries in key markets, they still face some headwinds and business in the Americas has been challenging for each of them.
Copyright © 2022 FashionNetwork.com All rights reserved.