UK retailer Frasers Group has announced that it is expanding its empire with an increased investment in German fashion house Hugo Boss. Frasers Group now owns 4.5% of Hugo Boss’ total share capital, and through the sale of put options, it owns 13.7% of the shares. The investment is valued at approximately £390 million, reflecting Frasers Group’s confidence in the Hugo Boss brand, strategy, and management team. The company aims to be a supportive stakeholder and create value for both Frasers Group and Hugo Boss shareholders.
This move by Frasers Group comes on the heels of Hugo Boss reporting record quarterly sales and gaining momentum in mid-January. The fashion house exceeded its own guidance with its preliminary 2021 results, making it a highly successful year according to CEO Daniel Grieder. In addition, Hugo Boss has revamped its creative leadership team, with Marco Falcioni taking over from Ingo Wilts. The brand has been relaunching its Hugo and Boss labels, targeting a younger and more casual style, and has achieved success with marketing campaigns featuring celebrities.
While Frasers Group recently added Studio Retail to its portfolio by acquiring the value e-tailer out of administration, this increased investment in Hugo Boss showcases its commitment to the luxury market. Frasers Group has been strengthening its presence in the luxury sector, evident with its investment in the rapidly expanding Flannels retail brand.
Useful links:
– Frasers Group website
– Hugo Boss website
