Hugo Boss Rating Revised as AlphaValue/Baader Europe Notes Strategic Reset's Expected Impact on Near-term Profit

MT Newswires · 3d ago
10:00 AM EST, 12/15/2025 (MT Newswires) -- AlphaValue/Baader Europe updated Hugo Boss' (BOSS.F) rating to add from buy, with an unchanged price target of 42.5 euros, noting management expectations that the German fashion group's strategic reset will weigh on topline full-year 2026 results. "We continue to view the strategic direction positively. While the near-term outlook is challenging, the focus on margin quality, cash flow generation and brand discipline, strengthens the long-term investment case. We stick to our positive view, acknowledging that patience will be required before the benefits of the reset translate into renewed earnings momentum," according to a Dec. 12 note. Analysts noted that Hugo Boss' management views 2026 as a "realignment year," driven by brand elevation and distribution optimization, and is forecasted by the company to result in a mid to high single-digit sales decline for the full year. As such, the research firm raised its EPS assumptions for full-year 2025 by 3.64% to 3.41 euros and reduced its 2026 estimates by 35.5% to 2.32 euros, after incorporating the 2025 third-quarter results and updated outlook.