German share markets rose significantly over the year

The ongoing expansionary monetary policy of the U.S., European and Japanese central banks and the positive economic newsflow from the United States brought about clear gains on the German share markets at the beginning of the year. Over the first half of the year, recurring uncertainties regarding the euro debt crisis, speculation about a potential reduction in the volume of bond purchases by the U.S. Federal Reserve and disappointing economic data from China led time and time again to price corrections, significant in some cases. As of the end of June, the German share markets were supported by brightening early indicators worldwide and the assurance by European and U.S. central banks that they intended to continue their expansionary monetary policy. In the meantime, the markets only came under pressure from the U.S. budget dispute arising again as well as political crises and economic setbacks in some Eurozone countries. Most of all the agreement between Republicans and Democrats on the passing of a new U.S. budget provided great stimulus on the markets, which meant that the DAX and MDAX reached new all-time highs of 9,589 and 16,626 points just before the end of the year.

HUGO  BOSS share closes the year at a new all-time high

The HUGO  BOSS share initially started the year with significant gains, but lost some ground following the presentation of the Group’s full year 2012 figures in March, however. In the days prior to the publication of first quarter results and in reaction to the confirmation of the outlook for 2013, the share price significantly rallied up to the beginning of May. The subsequent share placement by the majority shareholder, the payout of the dividend for fiscal year 2012 and the general downwards movement on global stock markets led to a decline until the end of June. After this intermediate price correction, the share saw significant gains, picking up speed most of all following the publication of first half year results at the end of July, when the Company’s targets for 2013 were reconfirmed. The HUGO  BOSS share was additionally lifted by the generally positive mood on the stock markets and the indications of economic recovery in Europe, the largest sales market for the Group. Following shorter phases characterized by price corrections in September and October, the share saw gains over the rest of the year. Details of various strategic initiatives presented at the Investor Day in Hong Kong at the end of November and the reinforcement of the sales target for 2015 provided a boost to the share’s development towards the end of the year in an overall positive overall market. All in all, the HUGO  BOSS share ended the year at a new all-time high of EUR 103.50, up 30% on the closing price at the end of 2012.

DAX and MDAX also saw strong gains over the past year, up 25% and 39% respectively over the year. On average, the shares of companies in the fashion and luxury goods industry also saw price gains in the past year. For example, the MSCI World Textiles, Apparel & Luxury Goods Index, which reflects the share price performance of companies operating in the apparel and luxury goods segment, rose 25% in 2013.

This means the HUGO  BOSS share developed better than the DAX, Germany’s leading share index. Furthermore, it exceeded the average share price development of companies operating in the fashion and luxury goods industry. It rose less strongly in comparison to the MDAX, the performance of which benefited from the comparatively high weighting of very cyclical shares.