Hugo Boss has flopped on the stock market. When presenting its medium-term growth strategy for the period up to 2028, the fashion group shocked investors with a sales and earnings warning for the coming year. Shares in the Metzingen-based company fell against the market trend in Xetra trading, at times dropping by 12.2% to 34.37 euros. Meanwhile, the MDax, on which Hugo Boss is listed, gained 0.3%. CEO Daniel Grieder's promise that the situation would improve by 2027 was largely ignored by investors.

In a conference call with journalists, the CEO described 2026 as a „year of adjustment“. He announced plans to „optimise“ the product range and distribution, among other things, in order to then shift to a profitable growth course. However, the restructuring of the group will initially reduce revenues and earnings. Management expects currency-adjusted sales to decline by 5 to 9% next year. According to Grieder, earnings before interest and taxes (EBIT) are expected to be between 300 million and 350 million euros in 2026. This would correspond to a decline in earnings of 30 million euros at best and 80 million euros at worst.

At the beginning of November, Hugo Boss already dampened investors' expectations for the current year. When presenting its third-quarter figures, the Executive Board lowered its outlook to the lower end of the previous forecast range. Compared to 2024, this would represent a decline in sales of 100 million euros and an EBIT increase of 19 million euros or 5%. Previously, the management had been targeting consolidated revenues in a range of 4.2 billion to 4.4 billion euros. EBIT was originally expected to reach a range of 380 million to 440 million euros. However, the economic downturn thwarted these plans. At the time, Hugo Boss reported consumer reluctance and negative currency effects.

The recent slump in the share price is likely to fuel the power struggle for dominance within the company. Five days before announcing its updated strategy, Hugo Boss published a statement from its largest shareholder, Frasers Group, in a mandatory disclosure. According to the statement, the British investor has withdrawn its confidence in Supervisory Board Chairman Stephan Sturm. The former CEO of Fresenius has only been at the helm of Hugo Boss's supervisory board since May of this year. Sturm is resisting this pressure. According to the company, the supervisory board chairman intends to remain in office.

Frasers has a blocking minority with a 25% share of voting rights. The second-largest shareholder, with 14%, is the Marzotto family from Italy. 59% of the share capital is in free float, with Hugo Boss itself holding 2%. Behind the largest British sporting goods retailer is the trainers billionaire Mike Ashley. His son-in-law, Michael Murray, has been running Frasers since 2022 and sits on the supervisory board of Hugo Boss. With its latest move, Frasers aims to reorganise the Hugo Boss supervisory board in its favour.

Frasers recently announced that it would further increase its stake. If the investor reaches the 30% threshold, a mandatory offer to the remaining shareholders would be required. Including put options, it already holds 32%. If Frasers were to convert these into shares, a takeover bid would follow.

In a conference call with journalists, Grieder responded to a question about a takeover by Frasers by saying that this should be put to the British investor. According to the CEO of Hugo Boss, the management board is in „good dialogue“ with the two largest shareholders. He described Frasers as an investor that brings „a lot of experience“ to the table. Frasers joined Hugo Boss five years ago.

In July of this year, Frasers criticised the Swabian company's dividend policy. The investor demanded management to concentrate on increasing the share price instead of paying dividends. At that time, the share price was still at 42 euros.