The Metzingen-based fashion group Hugo Boss AG has recently made much faster progress on its reform course than originally expected. On Thursday, the company therefore presented new growth targets as part of an investor day.
Almost two years ago, when presenting its “Claim 5” strategy program, the group announced that it wanted to increase its annual sales to four billion euros by 2025. CEO Daniel Grieder said that this mark will probably already be reached in the current financial year and thus two years earlier than planned. The new target for 2025 is now five billion euros.
The forecast for earnings before interest and taxes (EBIT) was also raised sharply. According to current plans, it should reach at least 600 million euros in 2025. Originally, only around 480 million euros were targeted.
CEO Grieder praises “impressive comeback”
CEO Grieder highlighted the successes of the latest reforms, which were launched shortly after he took office in the summer of 2021. “With ‘Claim 5’ we introduced the right strategy at the right time,” he emphasized. “Thanks to the great commitment and passion of our teams, we have made an impressive comeback and achieved outstanding results.” Grieder is correspondingly optimistic about the near future: “We have everything we need to continue our success story,” he explained.
It is now planned to push the successful initiatives further. After the consistent refreshment of the two group brands Boss and Hugo, the company will “continue to place a special focus on further strengthening the 24/7 lifestyle image of both brands in the future,” explained the clothing supplier. In order to do justice to all target groups and occasions, the Group relies on further differentiation through sub-lines. The launch of the Hugo Blue denim line for the coming year had already been announced in spring, and the company has now announced that it will be expanding the Orange line to include women’s fashion again in the future.
The group also wants to use the “continued high brand dynamics” to accelerate expansion in retail. It is now planned to expand its own branch network to “around 500 points of sale” by 2025. So far, the goal had been 470 locations. At the same time, the number of franchise stores in the full-price segment is to be increased from 300 to 500.