Burberry is attracting renewed investor attention as its turnaround strategy begins to show signs of progress and Frasers Group increases its financial exposure to the British luxury fashion brand.
Frasers, controlled by Mike Ashley, increased its position in Burberry to the equivalent of 7.42% of voting rights in October, up from 6.32% at the end of September. The position is held through financial instruments, specifically sold put options, rather than direct share ownership. The move comes as Frasers expands its interests in the luxury sector, including its ownership of Harvey Nichols and its investment in Hugo Boss.
Burberry has been working to restore demand for its products following a difficult period in which sales declined and the brand faced pressure to reconnect with its core customers. Its strategy has placed greater emphasis on established products, including trench coats and scarves, alongside efforts to improve store performance and reduce discounting.
The company reported a 5% increase in comparable retail sales in the first quarter of its 2027 financial year, with retail revenue reaching £455 million. Growth across its product categories and improvements in several regional markets provided signs of progress, although performance remains uneven and the recovery is not assured.
Burberry shares also rose by 1.90% on 12 October to close at £10.44, outperforming the wider market during that session. The movement followed a period of weaker share price performance, leaving the stock below its 52-week high.
Finsbury Growth & Income Trust holds Burberry in its portfolio, with the company representing 6.3% of the Trust’s portfolio in its published holdings as at 31 May 2026.
Finsbury Growth & Income Trust Plc (LON:FGT) invests in the shares of predominantly UK-listed companies, with the objective of achieving capital and income growth.
