Hugo Boss Shares Went Down With 48%

Economy Jamie Simon
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As a result of the expected financial results and estimates of analysts, the market value of the German clothing brand last year fell by almost half, to 3.6 billion euros. Analysts believe that the German company’s profit will be 216.66 million euros this year, a depreciation of over 32%, while the estimate for 2017 is for 248.4 million euros.

The fashion house goes through a period of recovery and reorganization after the former CFO, Mark Langer, was appointed the CEO of the company this year. In 2015, the company reported a turnover of 2.81 billion euro, an appreciation of 9.3% over 2014, while gross Hugo Boss was 319 million euros, down 4.2%. On the other hand, total sales were of 1.264 billion euros in the first six months of the year, down with 3.8%.

In Europe, Hugo Boss has sold clothes worth 780 million euros, while on the American continent were reported sales of 271 million euros and 182 million euros in Asia. The company has 1,122 stores worldwide, over half of them are located in Europe. The Hugo Boss profit in H1 was 49.5 million, down with 66% compared to H1 from 2015.

Hugo Boss was founded in 1924 in Metzinger, a small town south of Stuttgart. Initially, the workshops made confection uniforms for policemen and postmen. The business was not going very well and the economic climate in Germany at that time, just after the First World War and the Peace of Paris (1919) – that at the beginning of the German economic downturn that propelled Hitler to power – has brought the company to bankruptcy. As a result, the owner had to find solutions to survive the crisis.

Hugo Ferdinand Boss and his creditors concluded a deal in 1931, after which the clothing company remains with just six sewing machines. The owner then tried to restart the business. Coincidence or not, the wind begins to blow in Hugo Boss’s sails along with its entry in the National Socialist Party in the same year. Boss becomes one of the financial backers of the SS. But there is no evidence that it truly adhered to the Nazi doctrine.