By 2025, Hugo Boss wants to double its sales to $4.75 billion

5th Aug 2021, Mumbai:

Hugo Boss CEO Daniel Grieder, a former Tommy Hilfiger executive who took over in June, said it was his goal to make the company one of the top 100 worldwide brands by 2025, with marketing expenditure expected to exceed 100 million euros.

BERLIN: Hugo Boss' new CEO set an ambitious goal for the company on Wednesday: by 2025, revenues will have doubled to 4 billion euros ($4.75 billion), with an operating profit margin of 12 percent of sales. Hugo Boss, who has been badly impacted by coronavirus lockdowns, announced a sales increase in the second quarter, especially in the United Kingdom and China.

Hugo Boss CEO Daniel Grieder, a former Tommy Hilfiger executive who took over in June, said it was his goal to make the company one of the top 100 worldwide brands by 2025, with marketing expenditure expected to exceed 100 million euros. The firm stated it will stick to its current approach of seeking to appeal to younger customers while also aiming to quadruple women's fashion sales by 2025. Hugo Boss, which is famed for its sophisticated men's suits, expects online to account for 25-30% of sales by 2025, up from around 16% today. It also intends to renovate about 80% of its stores by 2025, at a cost of around 500 million euros. Hugo Boss stock was up 1.9 percent at 0830 GMT.

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The firm said its main Boss brand suffered a currency-adjusted 5% drop in second-quarter revenue, while Hugo, geared at a younger demographic, saw a 2% increase. While sales of casual designs have continued to rise as the working-from-home trend encourages more relaxed clothing, Hugo Boss has reported a rebound in formal wear sales due to pent-up demand for business and party attire. Hugo Boss claimed sales were up 7% in the United Kingdom compared to 2019 and up 33% in mainland China, according to preliminary second-quarter figures released last month. Despite demands for a boycott of Western goods started in late March in response to Western claims of forced labor in Xinjiang, China's comeback occurred despite at least three Chinese celebrities quitting Hugo Boss in March.

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