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 (65% of sales), should allow the company to generate average returns of 10%, 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
|
KER
|
|---|---|---|---|
Price/Earnings (Normalized) | 12.26 | 10.49 | 13.99 |
Price/Book Value | 2.70 | 1.31 | 2.79 |
Price/Sales | 0.83 | 0.75 | 2.17 |
Price/Cash Flow | 5.34 | 7.73 | 9.46 |
|
Metric
|
BOSS
|
PVH
|
KER
|
|---|---|---|---|
Quick Ratio | 0.44 | 0.55 | 0.68 |
Current Ratio | 1.65 | 1.18 | 1.38 |
Interest Coverage | 10.50 | 9.35 | 12.44 |
|
Metric
|
BOSS
|
PVH
|
KER
|
|---|---|---|---|
Return on Assets (Normalized) | 8.67% | 6.20% | 8.33% |
Return on Equity (Normalized) | 23.91% | 13.99% | 20.97% |
Return on Invested Capital (Normalized) | 14.87% | 8.85% | 11.34% |
|
Ticker
|
Name
|
Morningstar Rating for Stocks
|
Capital Allocation
|
Economic Moat
|
Market Cap
|
|---|---|---|---|---|---|
HMRZF
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HNNMY
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RL
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PVH
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GIL
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VFC
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UA
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UAA
| Under Armour Inc Class A | Jsbknbqt | Fwln | $2.8 Bil | |
HBI
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