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
|
KER
|
|---|---|---|---|
Price/Earnings (Normalized) | 12.25 | 10.13 | 13.33 |
Price/Book Value | 2.70 | 1.27 | 2.66 |
Price/Sales | 0.83 | 0.73 | 2.06 |
Price/Cash Flow | 5.33 | 7.47 | 9.02 |
|
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% | 5.77% | 8.33% |
Return on Equity (Normalized) | 23.91% | 13.00% | 20.97% |
Return on Invested Capital (Normalized) | 14.87% | 8.28% | 11.34% |
|
Ticker
|
Name
|
Morningstar Rating for Stocks
|
Capital Allocation
|
Economic Moat
|
Market Cap
|
|---|---|---|---|---|---|
HMRZF
| Hennes & Mauritz AB Class B | — | Mqvdk | $26.0 Bil | |
HNNMY
| Hennes & Mauritz AB ADR | — | Cvyrnn | $26.0 Bil | |
MONRY
| Moncler SpA ADR | — | Tmvw | $18.6 Bil | |
RL
| Ralph Lauren Corp Class A | Mwhdhmvmm | Tvhqvf | $10.5 Bil | |
PVH
| PVH Corp | Nhspmxhg | Gcn | $6.3 Bil | |
GIL
| Gildan Activewear Inc | Cqcccnrb | Fxr | $5.9 Bil | |
VFC
| VF Corp | Klqclrpdr | Ncqvbf | $4.8 Bil | |
UAA
| Under Armour Inc Class A | Zsnhbgft | Cvzkw | $2.9 Bil | |
UA
| Under Armour Inc Class C | Hlrjfshh | Hgy | $2.9 Bil | |
HBI
| Hanesbrands Inc | Sxjpclqp | Wjbctd | $1.6 Bil |
