Skip to main content
BoF Logo

The Business of Fashion

Agenda-setting intelligence, analysis and advice for the global fashion community.

Hugo Boss Raises 2025 Sales Target

Hugo Boss store front
Hugo Boss on Thursday raised its 2025 sales target. (Shutterstock)

German fashion house Hugo Boss on Thursday raised its 2025 sales target, betting on strong demand across its markets as it proved immune to weaker US consumer sentiment.

The company now aims for annual sales of €5 billion ($5.4 billion) by 2025, compared to the previous target of €4 billion, which it expects to meet this year.

Hugo Boss has undergone a brand revamp under the leadership of former Tommy Hilfiger head Daniel Grieder, investing in marketing to boost sales and expand market share.

It also targets operating profit (EBIT) of €600 million by 2025, up from a previous goal of around 480 million, and an EBIT margin of at least 12 percent versus a previous forecast of around 12 percent.

ADVERTISEMENT

The company, whose brands have been gaining traction among younger consumers thanks to targeted social media campaigns, said it would keep marketing spend at 7 percent to 8 percent of group sales until 2025.

Grieder said he still sees “very promising” growth rates in the US, in contrast with luxury and retail peers flagging weakening consumer spending there.

“While cracks are clearly visible in the US consumer environment and to a lesser extent in Europe, Hugo Boss has been immune so far,” Citi analysts said.

The world’s top consumer and luxury goods companies started 2023 strongly as demand in China recovered, but worries remain regarding US growth and a possible slowdown in China’s post-Covid rebound after factory activity dropped in May.

In the Asia-Pacific region, Hugo Boss expects revenue to grow at a low double-digit percentage rate annually between 2022 and 2025, and aims to grow the region’s share of sales from the current 13 percent to around 20 percent, or €1 billion by 2025.

“Unleashing the brands’ full potential in China will continue to be of particular importance,” the group said.

Hugo Boss shares, which have gained around 46 percent over the past year, fell slightly, down 1.5 percent.

By Linda Pasquini

ADVERTISEMENT

Learn more:

Hugo Boss Lifts Profit Outlook After Q1 Sales Jump

German fashion house Hugo Boss raised its 2023 profit outlook on Thursday, forecasting stable gross margins and more efficiency gains from its global store network this year.

In This Article
Topics
Organisations

© 2024 The Business of Fashion. All rights reserved. For more information read our Terms & Conditions

More from Retail
Analysis and advice from the front lines of the retail transformation.

Why Esprit’s Ambitious Rebrand Fell Short

The company is in talks with potential investors after filing for insolvency in Europe and closing its US stores. Insiders say efforts to restore the brand to its 1980s heyday clashed with its owners’ desire to quickly juice sales in order to attract a buyer.


How Adidas Sambas Took Over the World

The humble trainer, once the reserve of football fans, Britpop kids and the odd skateboarder, has become as ubiquitous as battered Converse All Stars in the 00s indie sleaze years.


view more

Subscribe to the BoF Daily Digest

The essential daily round-up of fashion news, analysis, and breaking news alerts.

The Business of Fashion

Agenda-setting intelligence, analysis and advice for the global fashion community.
CONNECT WITH US ON
The Business of Beauty Global Awards - Deadline 30 April 2024
© 2024 The Business of Fashion. All rights reserved. For more information read our Terms & Conditions, Privacy Policy, Cookie Policy and Accessibility Statement.
The Business of Beauty Global Awards - Deadline 30 April 2024