26. November 2013
Press Releases – Financial
Hong Kong, November 26, 2013. At its Investor Day in Hong Kong today, the Managing Board of HUGO BOSS AG reports on the progress in medium-term business development and confirms its goal of achieving the planned sales of EUR 3 billion in 2015. The continuing global expansion of HUGO BOSS in conjunction with growing retail activities will also drive the Group’s success going forward. HUGO BOSS expects to generate more than 60% of its sales in 2015 by selling collections directly to consumers. Thanks to the opening of new retail locations in the major cities of the world, combined with faster than anticipated integration of wholesale floor space, HUGO BOSS has been able to distance itself from the decelerating world economy in terms of sales.
Despite the investments associated with this, which suppressed margin progress in the last two years, HUGO BOSS is confirming its objective of continuously improving its profitability. In addition to systematic expansion and enhancement of its store network, the Group will intensify investments in brand communication towards the end consumer to accelerate Group growth and achieve a 25% EBITDA margin. However, the Group is assuming this goal will only be reached after 2015.
The Company feels there is considerable further potential in all strategic growth areas to expand its market position as one of the global leaders in the premium and luxury apparel segment: HUGO BOSS is supplementing its core competence in the field of premium menswear with a significantly strengthened range in the men’s luxury segment. Womenswear will receive a substantial upgrade from the cooperation with Jason Wu as the Artistic Director for BOSS Woman, thereby activating existing sales potential in a more targeted manner than in the past. The expansion of the Group’s high-quality own retail network and the extension of active space management in department stores is allowing HUGO BOSS to stage a globally consistent brand presence, thereby offering its customers an inspirational shopping experience and increasing penetration in established sales regions. In this context, at the Investor Day today, HUGO BOSS is highlighting its ambition of gaining further market share in Asia and China in particular. For this purpose, the Group is investing in the perception of its brands and the appeal of its market presence. Finally, with measures to boost its global operative performance especially in logistics and IT, HUGO BOSS is expanding its competitive edge in this area.
Claus-Dietrich Lahrs, CEO of HUGO BOSS AG, comments: “In the last few years we have strengthened HUGO BOSS as a global brand and geared it more directly to consumers. Today, customers experience our brand world as even more high value. It is therefore the right decision to invest in the strength of our brands and distribution, thereby creating very good long-term growth prospects for the company.”
If you have questions, please contact:
Dr. Hjördis Kettenbach
Head of Corporate Communications
Tel: +49 (0) 7123 94-2375
Fax: +49 (0) 7123 94-2051
Head of Investor Relations
Tel: +49 (0) 7123 94-86267
Fax: +49 (0) 7123 94-886267
HUGO BOSS AG
Phone: +49 7123 94-0
Fax: +49 7123 94-80259