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Hugo Boss Sells Russian Business to Wholesale Partner Stockmann

The Hugo Boss logo is seen at one of the brand's stores in Hong Kong. CREDIT: BUDRUL CHUKRUT/AP
The Hugo Boss logo is seen at one of the brand's stores in Hong Kong. CREDIT: BUDRUL CHUKRUT/AP
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Hugo Boss Sells Russian Business to Wholesale Partner Stockmann

The Hugo Boss logo is seen at one of the brand's stores in Hong Kong. CREDIT: BUDRUL CHUKRUT/AP
The Hugo Boss logo is seen at one of the brand's stores in Hong Kong. CREDIT: BUDRUL CHUKRUT/AP

Hugo Boss has sold its Russian business to wholesale partner Stockmann for an undisclosed fee, the German fashion house said on Monday, joining the ranks of Western brands to exit the Russian market over the war in Ukraine.
The German fashion company suspended its retail business in Russia soon after Moscow invaded Ukraine in February 2022. It also paused its e-commerce activities in the Russian market and stopped advertising, Reuters said.
"We can confirm that our Russian subsidiary has been sold to Stockmann JSC - a company belonging to one of Hugo Boss's long-standing wholesale partners in the country," Hugo Boss said.
Neither party has disclosed financial terms of the deal, but Russia demands that foreign companies sell assets at discounts of at least 50%. Stockmann did not respond immediately to a request for comment.
Russian corporate filings showed that the deal closed on Aug. 2 and that Stockmann JSC now owns 100% of Hugo Boss Rus with a nominal value of 40 million roubles ($470,588).
Hugo Boss had come under pressure from organizations such as B4Ukraine for continuing to supply some goods to Russia. B4Ukraine is a coalition of civil society groups seeking to compel Western companies to sever ties with Russia.
"In terms of our wholesale business, we were fulfilling the contractual obligations to our partners," Hugo Boss said in April. "In this context, Hugo Boss is and has been complying with existing EU sanctions at all times."
Stockmann in Russia operates independently to its former Finnish owner, which sold its Russian business after Moscow's 2014 annexation of Crimea.

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Fashion

Swatch Shareholders Reject Bid by US Investor to Join Board

Watches are displayed at a Swatch store, which is closed during a partial lockdown as the spread of the coronavirus disease (COVID-19) continues, in Zurich, Switzerland January 28, 2021. (Reuters)
Watches are displayed at a Swatch store, which is closed during a partial lockdown as the spread of the coronavirus disease (COVID-19) continues, in Zurich, Switzerland January 28, 2021. (Reuters)
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Swatch Shareholders Reject Bid by US Investor to Join Board

Watches are displayed at a Swatch store, which is closed during a partial lockdown as the spread of the coronavirus disease (COVID-19) continues, in Zurich, Switzerland January 28, 2021. (Reuters)
Watches are displayed at a Swatch store, which is closed during a partial lockdown as the spread of the coronavirus disease (COVID-19) continues, in Zurich, Switzerland January 28, 2021. (Reuters)

Swatch Group shareholders on Wednesday rejected a bid by an American investor to secure a place on the company's board, as the family that has long dominated the watchmaker closed ranks to keep him out.

Steven Wood, founder of US firm GreenWood Investors, is pressing Swatch to focus more on its luxury brands such as Breguet and Blancpain in an attempt to turn around the fortunes of the Swiss company.

To be elected to the board he had to win over the Hayek family, which controls about 44% of Swatch voting rights.

The board had recommended Wood's bid be rejected before the firm's annual general meeting on Wednesday, and the company said 79.2% of shareholders voted against his election.

GreenWood holds about 0.5% of Swatch shares and Wood was seeking to represent so-called bearer shareholders, which have a majority of the share capital, but not of the voting rights.

After the vote, Wood said his bid had received strong support from investors, industry experts and Swatch employees, reinforcing his view that fresh perspectives on the board are essential to boost performance.

In a statement, Wood criticized how the vote was handled, and said he would consider requesting an extraordinary general meeting to ensure the election of a representative of the bearer shareholders is conducted in line with Swiss law.

Swatch said all motions were handled in accordance with legal requirements.

Proxy advisers Institutional Shareholder Services and Glass Lewis had recommended shareholders vote against the re-election of Swatch's supervisory board, questioning their independence.

Swatch is led by Chief Executive Nick Hayek, while his sister Nayla chairs the company that their father Nicolas helped create in the 1980s and built up into a global success story.

In late 2013, a year in which Swatch made net profits of over 1.6 billion Swiss francs ($1.9 billion), its shares were worth about 600 francs. Last year, profit dropped by 75% to 219 million francs. The stock now trades at less than 150 francs.

Swatch sales also slipped by nearly 15% last year, hit by sagging demand in China, which has also hurt luxury rivals like LVMH and Kering. Still, its Swiss peer and Cartier owner Richemont has retained its market appeal.

Richemont's watch sales ticked up slightly in 2024 and it has seen its shares rise almost a fifth so far this year. Swatch's stock is down by around 10% in 2025 and it is the most shorted on the Euro STOXX 600 index, according to LSEG data.