German fashion house Hugo Boss has revised its sales target for 2025 upward, citing strong demand across its markets and resilience to weaker consumer sentiment in the United States. The company now aims to achieve annual sales of €5 billion ($5.4 billion) by 2025, compared to its previous target of €4 billion, which it expects to meet this year.
Under the leadership of Daniel Grieder, former head of Tommy Hilfiger, Hugo Boss has undergone a brand transformation and invested in marketing to drive sales and expand its market share. The company also plans to increase its operating profit (EBIT) to €600 million by 2025, up from its previous goal of around €480 million, and achieve an EBIT margin of at least 12%, compared to a previous forecast of around 12%.
One of the key factors behind Hugo Boss’ success has been its targeted social media campaigns, which have resonated with younger consumers and contributed to the growth of its brands. The company intends to maintain its marketing expenditure at 7% to 8% of group sales until 2025.
While many luxury and retail companies have struggled with weakening consumer spending in the US, Hugo Boss has remained resilient and continues to experience “very promising” growth rates in the market. The recovery of demand in China has also played a role in the strong performance of consumer and luxury goods companies. However, concerns persist about the growth prospects in the US and a potential slowdown in China’s post-COVID rebound following a decline in factory activity in May.
Hugo Boss anticipates a low double-digit percentage growth rate in revenue for the Asia-Pacific region annually between 2022 and 2025. The company aims to increase the region’s share of sales from the current 13% to around 20%, or €1 billion, by 2025. Unleashing the brand’s full potential in China is deemed crucial for achieving this goal.
Despite the positive developments, Hugo Boss shares experienced a slight decline of 1.5%, although they have gained approximately 46% in value over the past year.
For more information on Hugo Boss’ sales target revision and brand transformation, you can visit [Link 1](https://www.example.com/hugo-boss-sales-target-revision) and [Link 2](https://www.example.com/hugo-boss-brand-transformation).
