Hugo Boss has urged investors to reject a takeover approach from Frasers Group, calling the roughly €2 billion offer financially inadequate and urging shareholders not to tender their stock. The German fashion house's management and supervisory board unanimously recommended against accepting the bid.
Frasers Group, which already holds about 26% of Hugo Boss, launched the offer to push its stake above 30%. The €38-per-share price represented a premium over the pre-approach trading level, but Chairman Stephan Sturm said it fell short of the company's intrinsic value. Investors have until July 27 to decide.
The rejection comes as Hugo Boss navigates a challenging period. The company reported a 1% decline in sales last year, citing weak demand in Britain and China, and cut its 2026 operating profit forecast in December while rolling out a new corporate strategy. Shares traded near the offer price on the day of the rejection.