The German group is preparing for a change in governance as its financial performance deteriorates and Frasers Group significantly strengthens its stake in the company. Stephan Sturm’s departure, expected on October 15, comes at a strategically important time for Hugo Boss.
A governance change comes at a challenging time for Hugo Boss (Shutterstock)
Hugo Boss is preparing to turn an important page in its governance. The German group has announced that Stephan Sturm will step down from its Supervisory Board, with his departure taking effect on October 15. Elected to the board and subsequently appointed chairman in May 2025, Sturm will remain in office until his successor is named.
The change comes at a delicate moment for Hugo Boss, both in terms of its financial performance and the evolution of its shareholder structure. After several years of strong expansion driven by the CLAIM 5 strategy, launched in 2021, the group entered a new phase at the end of 2025, dubbed CLAIM 5 Touchdown, which is set to run through 2028.
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2026, a Year of Transition
The first program was designed to reignite Hugo Boss’s growth and modernize its image, notably by attracting younger consumers, turning BOSS into a true lifestyle brand and boosting HUGO’s brand awareness. The subsequent CLAIM 5 Touchdown program, however, has pursued somewhat different priorities in an increasingly challenging luxury environment. More specifically, the group aims to sharpen its collection strategy by streamlining its distribution network and placing greater emphasis on full-price sales.
While Hugo Boss generated €4.27 billion in revenue in 2025, the German company considers 2026 to be a year of transition. In the first half of the year, sales declined by 8%, including a 9% drop in the second quarter alone. The EMEA region, the group’s largest market, was particularly affected, with sales down 13% in the second quarter.
Frasers Group Reshapes Hugo Boss’s Shareholder Structure
Stephan Sturm’s departure therefore comes against a more challenging financial backdrop and, at the same time, amid a profound shift in Hugo Boss’s shareholder structure, marked by Frasers Group’s growing influence. The British group controlled by Mike Ashley now holds 47.89% of the German company’s share capital, compared with around 26% when it launched its unsolicited takeover bid in June.
Earlier this month, in September, the British group indicated that it intended to reconsider its support for Stephan Sturm. His position had indeed become increasingly fragile: together with the rest of the board, the chairman had participated in rejecting Frasers’ €38-per-share offer, which was deemed insufficient. His departure appears to be the result of two factors: the new balance of power among shareholders and the need for a renewed strategy to restore the group’s growth.
Key Points:
- Stephan Sturm will step down as chairman of Hugo Boss’s Supervisory Board on October 15, as part of a governance change.
- Hugo Boss is facing a challenging 2026, with sales down 8% in the first half and 13% in EMEA in the second quarter.
- Frasers Group is strengthening its influence, now holding 47.89% of the capital, shifting the balance of power and increasing pressure for a strategic reset.
The results for the second quarter of 2026 published by Hugo Boss show a sharper slowdown than expected. Beyond the current economic climate, these results highlight deeper challenges linked to changes in the premium fashion market and the ability of brands to maintain their desirability in an increasingly competitive environment.
The British group Frasers now holds 47.89% of Hugo Boss’s shares, two months after launching a tender offer for the German group. The British group, did not ultimately take full control of the German fashion house, but it has come considerably closer to doing so.
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