German fashion house Hugo Boss plans to exit from the luxury market to return to the roots, those of premium menswear. Mark Langer, the recently appointed CEO of the group said: “The effort to stay in the luxury market is not particularly useful to our business,” Langer said yesterday the German newspaper Handelsblatt.
Hugo Boss has embarked on a restructuring plan which includes the reduction in retail investment between 160 to 180 million euro from 220 million in 2015. The new CEO also wants to close unprofitable stores, to arrive at a saving cost estimated at 55 million Euros.
Last May, the management predicted for 2016 an increase of sales by 5% (at constant currency), driven by sales in directly operated stores. The wholesale is expected to decrease between 5% and 9%, mainly because of the change in distribution strategy in the US. 2015 ended with sales up 9% to 2.8 billion Euros (+ 3% at constant currencies), but the profit was decreased by 5% to 319 million.
As reported vogue.co.uk, in the late afternoon a spokesman Hugo Boss has refuted the assumptions, circulated after the CEO statements, the possible effects on the Boss womenswear, high-end line designed by Jason Wu (in the photo taken by the camapgna Inez van Lamsweerde and Vinoodh Matadin, an autumn-winter 2016/2017 look). “We confirm that we will focus further on the line – he explained -. Hugo Boss will continue its collaboration with the creative director Jason Wu, which is extremely important for us. The womenswear remains a key factor in our average growth strategy certain period. ”
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