Hugo Boss AG
BOSS: XETR (DEU)
| Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
|---|---|---|---|
| LOCK|.% | LOCK|!J | LOCK|w&&!$@ |
We Don't Think the Boss Brand Garners a Moat Anymore
Business Strategy and Outlook
We think Hugo Boss’ strong positioning, with almost 10% market share and high brand awareness in the premium menswear category, as well as relatively high share of distribution control (69% of brick-and-mortar sales), should allow the company to generate average returns of 11%-12%, above our 9% cost of capital estimate over the next 5 years.
