Frasers Group has raised its stake in online fashion retailer Asos to 25.13 per cent from 24.21 per cent, strengthening its position as the second-largest shareholder in the company, according to a stock exchange filing released on Friday.

The move follows an increase by Asos' largest shareholder, Danish billionaire Anders Holch Povlsen's Bestseller, which recently upped its stake to 28 per cent from 27.1 per cent through a subsidiary called Aktieselskabet.

These developments have fuelled takeover speculation surrounding the online fashion giant, particularly as Povlsen is now just 2 per cent away from the 30 per cent threshold that would require a mandatory offer for the company under UK acquisition rules.

The shareholder activity comes as Asos issued a positive profit outlook, forecasting total sales growth of 13 per cent and adjusted EBITDA of £34m, ahead of analyst estimates. The retailer expects a "significant" improvement in profitability, thanks to strong gross margin growth driven by lower markdowns, a higher mix of full-price sales, and disciplined cost management.

Last month, Asos appointed its first managing director as part of organisational changes aimed at aligning its structure with its growth strategy. Sean Trend has been named managing director for the UK and US, while senior vice president of operations Jag Weatherley will take on the role of managing director for Europe and the rest of world.

Additionally, Michelle Wilson, previously chief of staff and strategy, will become managing director of Topshop and Topman. She will also oversea Asos's global wholesale division, covering partnerships with Nordstrom in the US, Reliance Retail in India and Bestseller in Europe.

Earlier this month, Asos announced a joint venture with Heartland which will see the company buy the Topshop and Topman brands from the firm. This news caused Asos shares to spike from around 367p to a high of 446p.

"We're pleased to be making this announcement today which is an important step in Asos' continued transformation," said José Antonio Ramos Calamonte, chief executive officer at Asos. "The joint venture and the launch of the refinancing will accelerate our strategy to both offer customers the best and most relevant product and to turn Asos into a company that delivers sustainable, profitable growth."

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