Hugo Boss Rejects Mike Ashley's Takeover Bid Amidst Profit Dip

Hugo Boss has announced better-than-expected profits for the second quarter of 2026, even as it actively contests a takeover attempt by retail magnate Mike Ashley's Frasers Group. The German clothing brand stated it had made "tangible progress" in the three months ending June 30.

Despite a 28 percent decrease in profits to £51 million, compared to £69.4 million in the same period last year, the figure surpassed analysts' profit expectations of £44.5 million. Frasers Group, owned by Ashley, has proposed a £1.7 billion offer to acquire the remaining 74 percent of Hugo Boss it does not currently own. This bid values the company at £2.3 billion.

However, Hugo Boss has urged its shareholders to reject the offer, deeming it "inadequate." A spokesperson for the company reiterated that the proposed price "does not adequately reflect the company’s standalone prospects and future value creation potential." The company's leadership believes its strategy, which includes enhancing the appeal of its product lines, will ultimately prove successful.

Sales for the quarter fell by 9 percent to £775 million. Hugo Boss attributed this decline in part to reduced footfall in its stores, which was impacted by the ongoing conflict in the Middle East. The fashion house is known for its suit collections, which have previously been promoted by figures such as David Beckham.