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The Frasers clothing group<\/strong> has just announced that it has further increased its stake<\/strong> in premium label Hugo Boss<\/strong>.<\/p>\n <\/p>\n In a press release dated May 31, the British group revealed that it now holds around 1.74 million shares, or 2.47% of Hugo Boss capital, and almost 13.92% of the capital via put options on shares<\/strong> in the German House. This represents an exposure to the German group of around 360 million euros.<\/p>\n <\/p>\n Frasers Group thus becomes a significant Hugo Boss shareholder alongside the other main existing<\/strong> shareholders, namely the Italian investment fund Zignago Holdings (9.03%<\/strong> of the capital), PFC (5.77%), DWS investment (5.74%) and Janus Henderson (4.15%).<\/strong><\/p>\n <\/p>\n <\/p>\n The announcement also boosted Hugo Boss shares, which gained 1.06%<\/strong> to 48.51 euros on the Mdax, the Frankfurt Stock Exchange index, at around 09:50 GMT. A welcome breath of fresh air for the stock, which had lost 28% since the beginning of 2024.<\/strong><\/p>\n <\/p>\n\n <\/p>\n By contrast, Frasers’ shares<\/strong> on the London Stock Exchange were down 0.51%<\/strong> at 870.50 pence ((51.1 euros).<\/p>\n <\/p>\n In the first half of 2024, Hugo Boss had disappointed the market<\/strong> despite reporting record sales for 2023, up 18% (on a currency-adjusted basis) to 4.1 billion euros, and operating profit (EBIT) up 22% to 410 million euros. This increase was lower than management had hoped for (20 to 25%).<\/p>\n <\/p>\n In March, the German group had also continued to disappoint, forecasting sales up by \u201conly\u201d 3% to 6%<\/strong> to 4.30 to 4.45 billion euros, and EBIT below expectations in 2024, due to the lack of consumer appetite, particularly in Europe. It had also lowered its forecasts for 2025<\/strong>, with its sales target of 5 billion euros likely to be reached later than expected.<\/p>\n <\/p>\n <\/p>\n British businessman Mike Ashley<\/strong> first developed the Sport Direct group<\/strong> in the sports retail segment in the 1980s. But it’s been several years now since his group, renamed Frasers, began its transformation towards a high-end positioning.<\/strong><\/p>\n <\/p>\n Stating his intention to transform it into the \u201cSelfridges <\/strong>(London department store) of sport\u201d<\/strong>, Mike Ashley has instead expanded its scope into fashion in the broadest sense<\/strong>. In 2017, he acquired \u201cAgent Provocateur<\/strong>\u201d, the high-end lingerie chain co-created in 1994 by Viviane Westwood’s son<\/strong>, Joseph Corr\u00e9.<\/p>\n <\/p>\n In 2018, Mike Ashley also acquired the British department store chains Flannel and House of Fraser<\/strong>, which carry Hugo Boss, among other brands.<\/p>\n <\/p>\n By early 2020, the group had clearly demonstrated its interest in luxury goods, with the acquisition of a 12.54% stake, more than doubled to 29.65%<\/strong> by the end of 2020, in its compatriot, the leather goods house Mulberry<\/strong>.<\/p>\n <\/p>\n In mid-2023, in another segment, that of e-commerce and fast fashion, Frasers took<\/strong> a 5% stake in Asos<\/strong> before gradually increasing its stake to almost 20% in August<\/strong>, becoming its second-largest shareholder.<\/p>\n <\/p>\n <\/p>\n In 2020<\/strong>, Frasers had begun to gain a foothold in Hugo Boss<\/strong>, taking a 5.1% stake in its capital, through shares and derivatives. At the time, the group announced its \u201cintention to be a supportive shareholder and to create value<\/strong>, in the common interest of Frasers Group and Hugo Boss shareholders\u201d.<\/p>\n At the end of 2022, Frasers had explained that it would increase its stake in Hugo Boss before reducing it significantly in 2023.<\/p>\n <\/p>\n This new rise in the British company’s shareholding in the German company bears witness to the continuity of its commitment.<\/strong><\/p>\n <\/p>\n <\/p>\n Industry analysts’<\/strong> comments on this latest transaction, as gathered by Afp<\/strong>, were mixed<\/strong>.<\/p>\n <\/p>\n Sophie Lund Yates<\/strong>, an analyst at Hargraves Lansdown<\/strong>, questions the \u201cmotivation\u201d<\/strong> of the Frasers group, which \u201calready brings together an eclectic mix of brands\u201d. \u201cIf a takeover bid is in the offing, Frasers investors will be keen to see a concrete plan for these assets, which has been sorely lacking in previous acquisitions\u201d, she added.<\/p>\n <\/p>\n On the other hand, independent analyst Andreas Lipkow<\/strong> felt that Frasers’ growing involvement \u201cmay have a positive effect\u201d on Hugo Boss<\/strong>, \u201cthe British fashion retailer\u201d having often \u201cshown good timing when entering the market<\/strong>\u201d in recent years”…<\/p>\n <\/p>\nHugo Boss shares up, Frasers shares down<\/h2>\n
A more upmarket evolution for Frasers<\/h2>\n
Arrival at Hugo Boss<\/h2>\n
Contrasting comments<\/h2>\n
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