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Luxury fashion giant Hugo Boss has announced it has increased its 2025 sales target to €5bn (£4.2bn) following the success of its ‘Claim 5’ strategy.
Hugo Boss revealed it is increasing its sales and earnings targets for 202 after it said the previous medium-term sales target of €4bn (£3.4) should already be achieved this year
It added this corresponds to a strong average growth rate of +11%, and is thus well above the expected industry growth.
The German retailer said the above-average sales growth goes hand in hand with a “significant improvement” in EBIT, which is expected to increase to at least €600m (£514m) by 2025.
This corresponds to a strong CAGR of at least 21% compared to fiscal year 2022. Consequently, HUGO BOSS is now aiming for an EBIT margin of at least 12% by 2025 (previously: around 12%).
The increased EBIT margin target also reflects the company’s increased expectations for gross margin development. The latter is now expected to be in a range of 62% to 64% by 2025 (previously: 60% to 62%), which can be attributed to the “sustained high brand dynamics and the potential for additional efficiency gains in the area of business operations”.
In order to achieve its financial goals by 2025, Hugo Boss confirmed it will continue to invest in its business and consistently implement the Claim 5 strategy.
CEO Daniel Grieder said: “Our ‘Claim 5’ strategy is a strong foundation for the sustainable, long-term success of Hugo Boss.
“Thanks to our high-performance organisation, our consistent commitment to sustainability and our highly motivated and committed teams worldwide, we are extremely confident that we will continue to achieve significant improvements in sales and earnings in the years to come.”
