The investments in the modernization of the collections and lavish campaigns pay off hugo boss despite the economic downturn. CFO Yves Müller increased the annual forecast for the second time this year on Wednesday. Hugo Boss now expects sales to increase by 12 to 15 percent to a record value of 4.1 to 4.2 billion euros in 2023. The operating result (EBIT) should increase by 20 to 25 percent to 400 to 420 million euros. In the spring, the group had already raised its annual targets and targeted an increase in sales of 10 percent and EBIT of 10 to 20 percent.
“From today’s perspective, everything indicates that we will achieve our goals for 2023 and are therefore facing the most successful year in the company’s history,” said Müller. The change in strategy that started two years ago is working in every respect. “We have won many young customers, especially in America and also more and more in Europe.”
Two years ago, CEO Daniel Grieder (61) started the conversion of the fashion outfitter, originally known for its classic men’s suits, and the associated investments in more growth. Grieder has thus made Germany’s only world-class fashion group desirable again. In the meantime, the Swabian company boasts with its brands Boss and Hugo that it meets the zeitgeist and scores with the younger generation with casual men’s fashion, but also suits in washable quality. Grieder speaks in the mm interview
about his secret of success and a possible end to the wild party. The group relies on well-known brand ambassadors such as Naomi Campbell (53), fashion shows and cooperation with other well-known brands such as Porsche.
Possible title sponsor for Formula 1 team
According to specialist media, the fashion group is also about to make a deal with the Formula 1 team Alpha Tauri. Hugo Boss is to become the new title sponsor of Red Bull’s sister racing team. A spokeswoman for the fashion company did not want to comment on the speculation on Wednesday and referred to the group’s current commitment as a sponsor and supplier to the Aston Martin racing team. Hugo Boss sees the racing series as an “exciting and interesting platform” that fits well into the group’s portfolio, said the company spokeswoman. Especially among the young target group, interest in Formula 1 has recently increased worldwide. Hugo Boss says it has been involved in motorsport for over 50 years. The Alpha Tauri team should make a decision about the future main sponsor after the summer break.
Profit taking on the stock market
In the second quarter, Hugo Boss sales grew by 20 percent to 1.03 billion euros. EBIT increased by 21 percent to 121 million euros. However, investors remained skeptical: those listed in the MDax small-cap index share
was around 1.5 percent down at EUR 71.88 in an overall weak market. Experts from Deutsche Bank and DZ Bank commented that the gross margin, which fell by 120 basis points to 62.3 percent, was somewhat disappointing. Traders also spoke of profit-taking. The share has gained a good 30 percent in value since the beginning of the year.