Positive mood on German stock markets leads to substantial price gains

The economic indicators in the Eurozone, United States and China continued to improve at the beginning of the year, and many companies provided surprises with results that were far better than expected. Moreover, the announcement of a comprehensive tax reform in the United States captured the imagination of the stock exchanges. Mid-year the DAX turned into a sideways movement. Positive momentum came from further rises in corporate profits and the election result in France. However, the appreciation of the euro, falling oil prices and geopolitical tensions dampened the positive mood. This stage was followed by a new increase from August as a result of the positive economic development. Furthermore, the ECB’s decision to continue with the bond-buying program combined with the adoption of the US tax reform prompted further price gains over the course of the year. However, due to interest rate hikes in the U.S., the appreciation of the euro and political uncertainties, the German stock markets were not able to maintain the high levels reached in October.

Nevertheless, at the end of the stock market year the DAX was 13% up on its 2016 close. The MDAX rose by 18% in the same period.

HUGO BOSS share profits from favorable market environment and positive performance

At the beginning of the stock market year, the HUGO BOSS share benefited from the publication of preliminary results that exceeded market expectations. A positive market environment for companies in the premium segment of the apparel industry caused the share price to further soar in the first quarter. The share then lost ground. The decisive factors here were the declining comp store sales development in the Group’s own retail business during the first quarter and fears of a drop in consumer confidence in Great Britain. The progress in implementation of the strategic realignment reported at the Investor Day and better-than-expected quarterly results led to a significant share price gain in early August. Consequently, the HUGO BOSS share climbed to its highest price of the year of EUR 77.74 in October. In the months that followed, the share price came under pressure for a short time due to uncertainties regarding the margin outlook for 2018. Towards the end of the year, however, the HUGO BOSS share recovered again in expectation of a strong final quarter. At the end of the reporting period the HUGO BOSS share was quoted at EUR 70.94, equivalent to a gain of 22% over closing price of EUR 58.13 at the end of 2016.

The MSCI World Textiles, Apparel & Luxury Goods Index, which tracks the share price performance of key companies operating in the apparel and luxury goods segment, rose by about 32% in 2017. Substantial price gains of some highly weighted companies within the luxury sector listed on the index played a decisive role in this.