Hugo Boss sells Russian business

Hugo Boss is now finally parting with its Russian business. As reported by the Handelsblatt newspaper, Stockmann JSC, Metzinger’s long-standing wholesale partner, is taking over the business on the Russian market. Rumours of a complete sale have repeatedly surfaced over the past two years in light of the war in Ukraine. All Russian shops closed during the first year of the war in 2022.

An agreement has now been reached on the sale of its Russian subsidiary to Stockmann JSC, Boss announced on Wednesday, confirming a corresponding media report. The European authorities still have to approve the deal.

The Russian news agency Interfax had previously reported that the Russian government commission had given its approval to the sale to the retailer Stockmann. The purchase price was not disclosed. However, in view of the ongoing war situation and the isolation of ‘Putin’s empire’, it may only have had symbolic value. 

As a result of the agreement, the fashion group will no longer have its own legal entity in Russia.

Hugo Boss recently announced that the sales target of five billion euros for 2025 is likely to be ‘slightly delayed’ due to the slump in consumption and geopolitical tensions – particularly in Ukraine and the Middle East. This year, the Management Board expects growth of 3-6% to between 4.30 and 4.45 billion euros in revenue.