The Frasers Group now has a 10.1 stake in Hugo Boss and owns more than 7 million shares. After taking into account the premium it will receive under the put options, the Frasers Group’s maximum aggregate exposure in connection with its acquired interests in Hugo Boss is approximately 204 million euros (around 186 million pounds).
The UK sportswear giant Sports Direct Plc rebranded as Frasers Group at the end of last year as part of its elevation strategy. Buying a stake in Hugo Boss is part of the company’s efforts to become more high-end and ultimately becoming the ‘Harrods of the high street’ according to CEO Mike Ashley.
By 2022, Hugo Boss Group aims to generate online sales of more than 400 million euros compared to 151 million euros in 2019 and to achieve this target, the company plans to expand Hugoboss.com to 24 new markets in fiscal year 2020. The company said that the plan also includes the rollout of Hugoboss.com to Canada and Mexico, scheduled for August this year, reinforcing the group’s online footprint in the important Americas region. Over the course of June, Hugo Boss has already added 22 new online markets to its portfolio, including Australia, Japan, Hong Kong, Poland and Portugal.
“The growing importance of online has become even more evident in 2020, as our industry continues to face an unprecedented situation and consumer behaviour increasingly shifts from offline to online,” said Matthew Dean, Director Global E-Commerce at Hugo Boss in a statement, adding, “We are therefore accelerating the international rollout of our online store, thereby making further, systematic headway with the digitalization of our business model.”
In the coming years, the company added, Europe and Asia/Pacific will continue to form the focus for further extending the concession model. In 2020 alone, Hugo Boss is targeting the conversion of seven partnerships. By 2022, such online partnerships are expected to contribute at least 200 million euros to the group’s own online sales compared to approximately 50 million euros in 2019.
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