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Hugo Boss needs stronger legs to win the fashion race

Hugo Boss jackets are seen in Kiev, Ukraine on May 17, 2017. REUTERS / Valentyn Ogirenko

MILAN, Aug 4 (Reuters Breakingviews) – The ambitions of the new CEO of Hugo Boss (BOSSn.DE), Daniel Grieder, appear high. The former manager of Tommy Hilfiger, at the head of the German brand listed since June, unveiled on Wednesday his intention to double its turnover to 4 billion euros by 2025 Read more. Meanwhile, operating margins, he hopes, will drop to 12% of sales before the pandemic. Both require Olympic-style sprinting abilities. Hugo Boss, whose men’s suits sell for over $ 700, has been hit hard by the health crisis, losing a third of his earnings last year.

Even if the group recovers much of the ground lost this year, Grieder will need to ensure that revenues grow at a compound annual rate of 12% through 2025. That’s faster than the projected average annual growth of 11%. for major luxury goods brands such as Kering. (PRTP.PA), LVMH (LVMH.PA), Moncler (MONC.MI) and Prada (1913.HK) through 2023, according to Breakingviews calculations based on Refinitiv estimates. Just like the Italian gold medalist in the 100 meters Lamont Marcell Jacobs, Hugo Boss will have to discover an unexpected rhythm. (By Lisa Jucca)

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Editing by Ed Cropley and Oliver Taslic

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Hazel J. Edmonds

The author Hazel J. Edmonds

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