HUGO BOSS raises 2025 sales target and outlines plans for future growth
HUGO BOSS has raised its sales target to £4.3 billion (€5 billion) by 2025, up 11% CAGR against 2022.
The company expects EBIT to reach £513 million (€600 million), with an EBIT margin of at least 12%.
Daniel Grieder, CEO of HUGO BOSS, said: "We have introduced the right strategy at the right time.
"This will enable us to reach our mid-term financial ambition of £3.4 billion (€4 billion) already this year, two years ahead of plan. And we have everything needed to continue our success story."
The strategy
The company will continue to keep its marketing investments between 7-8% of group sales until 2025. Consequently, by 2025 the company is now targeting sales of around £2.9 billion (€3.5 billion) for BOSS menswear, £428 million (€500 million) for BOSS womenswear and £856 million (€1 billion) for HUGO.
HUGO BOSS aims to increase revenues in brick-and-mortar retail to over £2.1 billion (€2.5 billion) by 2025. It is targeting store productivity improvements of at least 3% per year, supported by investments of up to £513 million (€600 million) between 2021 and 2025 to "modernise, further optimise, and selectively expand its global retail footprint".
The strategy also includes the further rollout of the "latest and more digitised" BOSS and HUGO store concepts, as well as growing the company's full-price store network to around 500 points of sale by 2025. It will increase the total number of full-price franchise stores from 300 to around 500 over the coming years.
The digital business is expected to continue its double-digit growth trajectory in the years to come, with digital sales still expected to achieve over £856 million (€1 billion) by 2025.
From a regional perspective, HUGO BOSS will continue to exploit its "strong momentum" in EMEA, where sales are forecast to grow at a mid to high single-digit CAGR to over £2.3 billion (€2.8 billion).
To foster growth and drive efficiencies going forward, the company will step up investments into its supply chain. At the same time, HUGO BOSS is expanding its global logistic capacities by around 40%.
