Photo: Depositphotos
Frasers, which owns about 26% of Hugo Boss’s shares, has offered to buy the shares at a price of 38 euros per share. Once a stake exceeds 30%, German law requires the investor to make a tender offer to all remaining shareholders, according to Reuters.
According to Hugo Boss, the offer price represents the statutory minimum and implies a premium of only 4.3% over the market value of the shares at the time the offer was announced. The company believes that this valuation does not take into account the fundamental value of the business and its growth prospects.
Felix Jonathan Dennle, an analyst at the Frankfurt-based bank Metzler, called Frasers’ offer a “tactical” move, noting that Hugo Boss’s management has independent financial reports confirming the validity of its recommendation to reject the offer.
Analysts at Citi took a similar position. The bank believes that the proposed price reflects legal requirements related to increasing Frasers’ stake rather than Hugo Boss’s market value.
The offer came during the implementation of the company’s new growth strategy. After several years of active investment in rebranding, Hugo Boss faced a slowdown in demand amid high inflation and weak consumer activity in key markets.
Last year, the company’s sales fell by 1%, primarily due to weaker demand in the UK and China. Late last year, Hugo Boss also lowered its operating profit forecast for 2026 and unveiled its “Claim 5 Touchdown” strategy, which runs through 2028. The strategy calls for improving the efficiency of its store network, expanding its footwear and accessories categories, and developing its women’s collection.
According to analysts, the rejection of the current offer will not change Frasers’ position as Hugo Boss’s largest shareholder. At the same time, the market’s attention will continue to focus on the results of implementing the “Claim 5 Touchdown” strategy and the company’s ability to restore revenue and profit growth amid ongoing uncertainty in the global apparel market.
