Fashion brand

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)

On Twitter

Capital Calls – More Concise Information About Global Finance:

SoftBank’s bet on pharmaceutical AI has long chances read more

Sony is playing a more strategic content game read more

Del Monte’s frozen IPO awaits a more successful market read more

Technological repression in China has family values ​​Read more

Stellantis CEO lives up to his reputation read more

Editing by Ed Cropley and Oliver Taslic

Reuters Breakingviews is the world’s leading source of financial agenda information. As the Reuters brand for financial commentary, we dissect big business and economic stories from around the world every day. A global team of around 30 correspondents in New York, London, Hong Kong and other major cities provide real-time expert analysis.

Sign up for a free trial of our full service at and follow us on Twitter @Breakingviews and at All opinions expressed are those of the authors.

Source link

Hazel J. Edmonds

The author Hazel J. Edmonds

Leave a Response