Hugo Boss sales drop as Frasers Group takeover looms
Hugo Boss has today reported “tangible progress” for the second quarter of 2026, despite earnings before interest and tax (EBIT) falling 28% to €59 million (£50.5 million).
Group sales declined by 9% on a currency-adjusted basis to €905 million (£775 million) in the second quarter, versus €1.002 billion (£858 million) in Q2 2025.
However, gross margin increased by a strong 200 basis points to 64.9% in Q2, “driven by sourcing efficiencies, improved pricing, and a higher share of full-price sales”.
The company’s latest financial results come just days after Frasers Group increased its holding in Hugo Boss to 37.58% after its €38-a-share takeover offer was cleared by regulators in Germany, making the offer “unconditional”.
Commenting on the second-quarter results, Daniel Grieder, Chief Executive Officer of Hugo Boss, said: “Sales remained impacted by our strategic realignment and a challenging external environment.
“But the strategy is already translating into tangible benefits and creating a structurally stronger Hugo Boss. Gross margin improved significantly, inventories declined, and free cash flow generation remained strong. These results confirm that we are in control of what matters.
“We also made meaningful strategic progress in other key areas. Consumer engagement was strengthened through impactful brand activations centred around our Spring/Summer 2026 collections. In addition, we continued to sharpen our product assortment and optimise our global distribution footprint.
“Our loyalty programme, HUGO BOSS XP, also gained further momentum, with younger consumer groups accounting for a growing share of new members.
“Looking ahead, our priorities are clear: we will further invest in brand relevance, structurally improve profitability, and foster cash generation. While macroeconomic and geopolitical uncertainties persist, we are encouraged by the progress achieved in the first half of the year.
“Supported by disciplined strategy execution and a strong financial foundation, we are well positioned to unlock the long-term potential of Hugo Boss and create sustainable value for our shareholders.”
Frasers Group launched its voluntary public takeover offer on 10 June for all Hugo Boss shares it did not already own. At launch, the bid valued the outstanding shares at approximately €1.98 billion and Hugo Boss as a whole at around €2.7 billion.
The European Commission granted merger-control clearance on 27 July, satisfying the offer’s only completion condition. The bid therefore became legally unconditional on 28 July.
Frasers had already crossed Germany’s 30% mandatory-offer threshold after buying a further 2,549,900 shares. Its holding stood at 30.28% before shares tendered during the initial acceptance period were included.
The group has declared the €38 offer price final. Its enlarged position does not by itself give Frasers majority ownership of Hugo Boss.
Hugo Boss’s Managing Board and Supervisory Board unanimously recommended that shareholders reject the bid in a reasoned statement issued on 25 June.
The board described the €38 consideration as financially “inadequate”, arguing that it did not reflect the company’s standalone value or medium-to-long-term potential. Bank of America and Goldman Sachs provided external opinions supporting that assessment.
Frasers CEO Michael Murray, who joined the Hugo Boss Supervisory Board in May 2025, was excluded from the committee assessing the recent takeover offer. Frasers is, however, reportedly considering Murray as a future Hugo Boss CEO if its takeover succeeds.
