Hugo Boss AG Rejects Frasers Group plc Takeover Bid

Hugo Boss AG reported second-quarter earnings before interest and taxes of €59 million, beating analyst forecasts of €52 million. While this represents a decrease from the €81 million earned in the previous year, the company improved its gross margin to 64.9% through pricing strategies and sourcing efficiencies. Currency-adjusted sales fell 9% to €905 million, a decline driven by weak demand in France, the UK, and Europe, as well as lower store traffic in the Middle East due to geopolitical tensions.

CEO Daniel Grieder attributed the performance to the Claim 5 Touchdown strategy, which prioritizes profitability over growth by reducing inventory and store counts. The company maintained its full-year guidance, projecting an EBIT between €300 million and €350 million.

Parallel to the financial report, the managing and supervisory boards of Hugo Boss AG recommended that shareholders reject an unconditional takeover bid from Frasers Group plc. The British retailer offered €38 per share, but the boards asserted that the offer undervalues the company. Shareholders have until August 13 to respond to the bid.