Hugo Boss AG

Frasers Group has increased its stake in Hugo Boss to almost 48% after a rejected takeover offer. The UK retailer, controlled by Mike Ashley, launched a voluntary €38-per-share cash offer in June for the shares it did not already own, valuing the remaining shares at roughly €2 billion, or about €2.7 billion for the whole company. Hugo Boss's management and supervisory boards urged shareholders to reject the bid as financially inadequate, but Frasers received valid acceptances for about 12.2 million shares, representing around 17.6% of the company's share capital and voting rights. Combined with its existing holding, Frasers now owns or has acceptances for about 47.9%, making it the largest shareholder but short of majority control. Hugo Boss supervisory board chair Stephan Sturm said the company appreciated Frasers' long-term commitment and looked forward to maintaining a constructive relationship.

Hugo Boss reported a 9% currency-adjusted decline in group sales for the second quarter of 2026, driven by weak consumer demand and strategic realignment measures. The BOSS brand saw an 8% revenue drop, while HUGO brand revenues fell 14% amid ongoing repositioning. Regionally, EMEA sales declined 13%, impacted by softer local demand and lower Middle East traffic, Americas sales slipped 1%, and Asia Pacific sales decreased 5%. Gross margin expanded by 200 basis points to 64.9%, supported by sourcing efficiencies, higher full-price sales, and price increases. EBIT reached EUR59 million with a margin of 6.5%, and net income amounted to EUR33 million, or EUR0.49 per share. Free cash flow before leases was EUR105 million in the quarter, and inventories were down 15% year-over-year.

Frasers Group's voluntary public takeover offer for Hugo Boss has become unconditional after receiving merger control approval from the European Commission. The UK retail group, already the largest shareholder with slightly more than 30%, is offering €38 per share in cash for the remaining shares. Hugo Boss management has urged investors not to accept, calling the consideration financially inadequate. The acceptance period has been extended to 13 August 2026. Hugo Boss reported revenue of €4.26bn and EBITDA of €781.5m for the 12 months to 31 December 2025.