Luxury fashion group Hugo Boss has increased its 2025 sales target to €5bn (£4.2bn) and confirmed plans to “expand its global footprint” in its latest strategy update.
Hugo Boss published an update today on its previously pledged ‘Claim 5’ growth strategy plan, which was unveiled in August 2021 and said that it had “introduced the right strategy at the right time”.
The fashion retailer said it has so far achieved “significant progress” across all five of its strategic targets, which include to boost brands, prioritise the product, lead in digital, drive omnichannel and establish strong operations for future growth.
Hugo Boss credited its strategic progress to its “branding refresh” last year to differentiate between millennial and Gen Z customers, which boosted both the Boss and Hugo brands respectfully.
As well as raising its sales target, Hugo Boss also forecasts EBIT to reach at least €600m (£513.7m), with an EBIT margin of at least 12% by 2025.
Hugo Boss said it will focus on “the further roll-out of the latest and more digitalised Boss and Hugo store concepts”, as well as driving momentum “across all geographies” in a bid to increase its market shares by the 2025 target deadline.
With a focus on omnichannel the fashion retailer also said it aims to boost revenues across its bricks-and-mortar retail offering to more than €2.5bn (£2.14bn) by 2025 and improve the productivity of its stores.
The fashion brand emphasised that sustainability is at the heart of its plans as it intends to “intensify efforts” across circularity initiatives and zero emissions, among other targets.
Hugo Boss chief executive Daniel Grieder said: “With ‘Claim 5’ we have introduced the right strategy at the right time. Thanks to the dedication and passion of our teams, we celebrated an impressive comeback and delivered exceptional results.
“This will enable us to reach our mid-term financial ambition of €4bn (£3.4bn) already this year, two years ahead of plan. And we have everything needed to continue our success story.
“That is why today we are increasing our top and bottom-line ambition. We aim to achieve revenues of €5bn (£4.3bn) and an EBIT margin of at least 12% by 2025.”
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