RBC downgrades Hugo Boss on risk of prolonged recovery

Hugo Boss AG

26/01/2026 07:56

** RBC Capital Markets cuts Hugo Boss BOSSn.DE to "sector perform" from "outperform", citing risks of a longer than expected recovery

** The broker says 2026 will be a year of reset, as the German fashion company's recent sales base growth has come at the cost of its operating margin

** Hugo Boss' CLAIM 5 Touchdown strategy looks like a route back to profitable growth, the broker says, but warns the necessary corrective measures mean the growth will not be immediate

** RBC notes the company is reducing its wholesale accounts to protect brand equity and improve its full price sales mix, but this will take time

** The broker expects sales momentum to build up from next year onwards

** Out of 19 analysts that cover Hugo Boss, five rate it "strong buy" or "buy",​ 12 "hold" and two​ "strong sell" or "sell" - LSEG data

** The company's shares are down 2% in early Frankfurt trade

(Reporting by Bernadette Hogg)

((bernadette.hogg@thomsonreuters.com))