Key facts
- Hugo Boss's board unanimously recommended rejecting Frasers Group's £1.7bn takeover bid.
- The offer of €38 per share was deemed "inadequate" by Hugo Boss.
- Frasers Group, which owns 26% of Hugo Boss, seeks to raise its stake above 30%.
- Hugo Boss is implementing a strategic overhaul, expecting a mid to high single-digit sales decline this year.
- Hugo Boss sales fell 6% to €905m in the first quarter.
Hugo Boss has formally urged its shareholders to reject a €2 billion ($2.3 billion) takeover bid from Mike Ashley's Frasers Group, deeming the offer "financially inadequate" and not reflective of the company's intrinsic value or potential. The German fashion brand's management and supervisory boards unanimously recommended against the bid, which represents a premium of just 4.3% to the share price when it was announced.
CEO Daniel Grieder stated that Hugo Boss has a well-defined strategy and a compelling path to superior long-term value creation. Analysts noted the offer's tactical nature and that Frasers' bid preserves strategic flexibility. Frasers Group, which owns approximately 26% of Hugo Boss, launched the bid to raise its stake above the 30% threshold that would trigger a mandatory full takeover offer.
Hugo Boss is currently implementing its "Claim 5 Touchdown" strategy through 2028, aiming to improve efficiency, focus on faster-growing categories, and expand in womenswear. The company reported a 1% drop in sales last year and a 6% decline in the first quarter to €905 million, blaming weak consumer demand in Britain and China. Despite these challenges, full-year earnings targets remain between €300 million and €350 million.