Mike Ashley’s Frasers Group has taken a stake in Burberry in its latest foray into the luxury market.

The retail group, which owns Sports Direct and House of Fraser, disclosed last night that it owns 4.1 per cent of the British trench-coat maker.

The FTSE 250 firm already owns luxury brand Flannels and Savile Row tailor Gieves & Hawkes, alongside a 37 per cent stake in Mulberry, another listed British fashion firm.

Frasers is also hoping to buy the remainder of fashion brand Hugo Boss, in which it already has a stake of more than 30 per cent.

Burberry, which features US model Kendall Jenner in its latest ad campaign, has struggled with dismal sales, but has shown signs that a turnaround plan under boss Joshua Schulman is starting to pay off this year.

Earlier this month, Burberry saw growth across all of its divisions for the first time since 2023.

Shares closed 5pc higher yesterday after the stake was disclosed, while shares in Frasers were up 2.5 per cent.