Outlook and Targets

‘CLAIM 5’ Strategy
With its strategy ‘CLAIM 5’, over the next five years, HUGO BOSS is fully committed to strongly accelerate top-line growth, claim its position in the consumers’ minds, and win market share for its strong brands BOSS and HUGO.

Outlook 2021

  Results 2020 Outlook 2021
Group sales (currency-adjusted) EUR 1,946 million Increase by between 30% and 35%

Operating result (EBIT)

Minus EUR 236 million

EUR 125 million to EUR 175 million

Trade net working capital as a percentage of sales

28.7%

Improve to a level of between 21% and 23%

Capital expenditure

EUR 80 million

EUR 100 million to EUR 130 million

2025 Financial Ambition

With its 'Claim 5' Strategy, HUGO BOSS aims to double sales to EUR 4 billion by 2025, which implies a strong CAGR of 16% taking 2020 as the base year, and 6% as compared to the pre-pandemic level of 2019. To successfully deliver on its strategy, HUGO BOSS will step-up investments into its products, brands, digital capabilities, as well as its global store network, all aimed at fueling industry-leading top-line growth. Consequently, over the next five years, value creation will shift from driving relative margin improvements to delivering strong top-line growth, absolute profitability improvements, as well as superior free cash flow generation.

Until 2025, gross margin is forecast at a level of between 60% and 62%, reflecting product investments to enhance the price-value proposition and fuel top-line growth. At the same time, HUGO BOSS is confident of returning to a strong EBIT margin of around 12% by 2025, translating into an EBIT CAGR of 6% between 2019 and 2025. Investments into the business will be compensated for by leveraging operating overheads as well as strong efficiency gains to be realized by optimizing the Company´s global store network. The latter relates to ongoing relocation and rightsizing initiatives, selective store openings and closings, as well as rent renegotiations. Driven by the significant top- and bottom-line growth, HUGO BOSS will generate substantial cumulative free cash flow between now and 2025. Improvements in trade net working capital and the smart and efficient use of capital expenditure will provide further support to free cash flow development. The majority of cumulative free cash flow around EUR 2 billion until 2025 will either be reinvested into the Company or distributed to shareholders through regular dividend payouts. In this context, the Company´s payout ration until 2025 will be in a range of between 30% and 50% of net income attributable to shareholders.

PRESS RELEASE

Further information

Reports & Downloads

All publications by HUGO BOSS AG can be found here, including financial reports and financial releases.

Strategy

With its growth strategy ‘CLAIM 5’, over the next five years, HUGO BOSS is fully committed to strongly accelerate top-line growth, claim its position in the consumers’ minds, and win market share for its strong brands BOSS and HUGO.

Investor Day

HUGO BOSS presented its new growth strategy 'CLAIM 5' during an Investor Day in August 2021. A replay of the presentations and the Q&A session as well as further related documents can be found on the following page.