Hugo Boss sales fell 10 percent in the second quarter, but other business indicators were better than expected and management continued to advise that shareholders reject a takeover bid from Frasers Group.
In June, Hugo Boss management urged shareholders against Frasers’ offer of 38 euros a share, arguing that it was not commensurate with the company’s potential. Led by chief executive officer Daniel Grieder, Hugo Boss is working to meet that potential, taking the brand through a strategic reset that prizes “quality over quantity.”
Shareholders have until Aug. 13 to make up their minds about selling to Frasers.
During a telephone conference in Germany Tuesday morning, executives blamed the company’s sales drop on a volatile economic situation and their own reset plan. The latter was launched last year when it became clear that more ambitious targets of 5 billion in sales per annum were not going to be met. Hugo Boss is not expected to return to growth until 2027.
Second-quarter sales tallied 905 million euros, a drop of 9 percent in currency-neutral terms, slightly below market expectations of 907 million euros.
