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 mid- to long term.
Hugo Boss is one of the leading, most-recognized menswear brands with around 10% of the designer menswear market, according to our estimates.
The company’s core formalwear category is a slow growth category as wardrobes become more casual.
|
Metric
|
BOSS
|
PVH
|
RL
|
|---|---|---|---|
Price/Earnings (Normalized) | 11.07 | 7.86 | 18.08 |
Price/Book Value | 2.15 | 1.02 | 5.09 |
Price/Sales | 0.65 | 0.63 | 1.91 |
Price/Cash Flow | 4.51 | 5.74 | 12.69 |
|
Metric
|
BOSS
|
PVH
|
RL
|
|---|---|---|---|
Quick Ratio | 0.47 | 0.55 | 1.43 |
Current Ratio | 1.62 | 1.24 | 2.19 |
Interest Coverage | 7.26 | 10.25 | 18.31 |
|
Metric
|
BOSS
|
PVH
|
RL
|
|---|---|---|---|
Return on Assets (Normalized) | 6.78% | 6.36% | 10.38% |
Return on Equity (Normalized) | 18.35% | 13.97% | 28.79% |
Return on Invested Capital (Normalized) | 12.12% | 8.93% | 13.00% |
|
1-Day Chart
|
Name
|
Price
|
Morningstar Rating for Stocks
|
Capital Allocation
|
Economic Moat
|
Market Cap
|
|---|---|---|---|---|---|---|
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United States