Hugo Boss terminates share buyback program amid Frasers Group takeover bid

German premium brand Hugo Boss will terminate its share buyback program early following announcements from UK retail company Frasers Group that it intends to build a controlling stake of more than 50 percent in the business.

The managing board of the Metzingen-based fashion house resolved on September 1 to end the buyback upon the expiration of September 8. The program, which originally launched on August 24 with a scope of up to 200 million euros through December 2027, was cut short after just over two weeks of trading. Between August 24 and September 1, Hugo Boss repurchased 124,044 shares for a total consideration of approximately 4.8 million euros (5.56 million dollars).

The strategic pivot comes as Shirebrook-based Frasers Group, majority-owned by founder Mike Ashley and led by chief executive Michael Murray, accelerates its attempt to take control of the luxury label. Following the expiration of the acceptance period for its voluntary public takeover offer, Frasers boosted its direct shareholding to 33,054,959 ordinary shares, representing 47.89 percent of the voting rights in Hugo Boss.

Frasers disclosed plans to further expand its holding past the 50 percent mark through financial instruments or potential market purchases. The British group also revealed it is reviewing its support for Stephan Sturm, chairman of the supervisory board of Hugo Boss. Murray currently holds a seat on the supervisory board.

Hugo Boss stated that the decision to end the share repurchases does not signal any shift in confidence regarding its strategy or long-term value creation. The group noted that its capital allocation framework remains unchanged and that the managing board will reassess a share buyback program as appropriate.