Hugo Boss Ends Share Buyback as Frasers Group Pushes Toward Majority Control
Hugo Boss has suspended its share buyback program after Frasers Group revealed plans to increase its ownership stake in the German fashion company beyond 50%, intensifying the battle for control of one of Europe’s best-known premium fashion brands.
The Metzingen-based fashion house said Tuesday that it would end the buyback initiative launched on August 24. The decision follows Frasers Group’s announcement that it intends to become the controlling shareholder of Hugo Boss after a previous takeover attempt failed to secure enough support from investors.
Hugo Boss emphasized that ending the program does not signal a shift in confidence about its business strategy or long-term growth prospects. The company said its broader approach to capital allocation remains unchanged and that future share repurchase opportunities will be reviewed when appropriate.
Before the program was terminated, Hugo Boss had bought back 124,044 shares worth approximately €4.8 million between August 24 and September 1.
The move comes as British retail giant Frasers Group continues expanding its influence over Hugo Boss. The company, controlled by founder Mike Ashley, currently owns just under 48% of Hugo Boss shares after increasing its position following a failed public takeover offer.
Frasers had offered €38 per share in cash for the remaining shares it did not already own, but Hugo Boss advised shareholders to reject the proposal, describing the offer as financially inadequate. The bid ultimately attracted acceptance from shareholders representing about 18% of the company’s shares, leaving Frasers short of full control.
Despite the unsuccessful takeover attempt, Frasers said its goal remains unchanged: securing a stake of more than 50% in Hugo Boss. Reaching that level would give the British retailer greater influence over the company’s strategic decisions and future direction.
Frasers is also reviewing its support for Hugo Boss Supervisory Board Chairman Stephan Sturm. The company said it would issue a formal statement if it decides to withdraw its backing, potentially opening the door to changes in leadership or governance.
The situation marks another major step in Frasers Group’s strategy of expanding its presence in higher-end retail. The company owns brands including Sports Direct and Flannels and recently added luxury department store Harvey Nichols to its portfolio.
Michael Murray, Frasers Group’s chief executive, also serves on the Hugo Boss supervisory board, further connecting the two companies as discussions over ownership and leadership continue.
Investors reacted cautiously to the developments. Hugo Boss shares closed 1% higher at €39.02 in Frankfurt, while Frasers Group shares declined 1.5% to 820 pence in London.
The next phase of Frasers’ investment could determine whether Hugo Boss remains independently managed or becomes part of a broader retail empire built around fashion, luxury, and international brand expansion.