Until 2018 is expected to return the group back on the growth path, agreed to in may, acting Chairman of the Board Mark Langer on Wednesday, the markets are on a longer losing streak. To a decline in the year 2016 a year of Transition and stabilization, according to a Long first before sales and earnings to go back to the top.
On the stock exchange that did not go down well. Until the early afternoon, the share price fell more than eleven percent. The news Agency Bloomberg surveyed analysts had expected in 2017, with a profit increase. Market participants complained that the group spent in its strategy-template, as has been customary medium-term financial objectives.
the plans for the current year have been Confirmed. After that, the currency can fall breinigte revenue in the worst case, to 3 percent and the operating result (adjusted Ebitda) by up to 23 percent.
the CRISIS IN THE fashion industry AND OWN ERROR
The stainless cutter from the Swabian town of Metzingen is suffering from the crisis in the fashion industry, but also under own errors. An expensive store expansion and the attempt to establish the Boss brand in the luxury segment, had failed. After a severe profit warning earlier this year, has nearly replaced the entire leadership. Only remained Long under his ousted predecessor, Claus-Dietrich Lahrs was responsible for the finances of the group.
brought The first changes has been Long in his new role as Chairman of the Board, already on the way. So first unprofitable stores have been closed. Also on the price structure, the group has tinkered already and the sales partner network in the USA thinned out. The costs are also down due to savings in administration, cuts in the Marketing and renegotiations of Rents. This year, around 65 million Euro will be saved.
That it will still take until 2018 before the changes have borne fruit, reasoned Long with the essence of the fashion industry. There is a need for a year, to changes in the collection for the customers in the stores to become visible.
TWO core brands – MEN IN FOCUS
next, want to hone Hugo Boss at the brand. Instead of the previous four, there will be only two brands. With the Label of “Boss” wants the group to provide a sophisticated business fashion as well as the discerning leisure collections. In addition, there is the cheaper brand, “Hugo”, which is aimed at trend-conscious and younger customers.
In all this, wants to take Hugo Boss in the future, more men in the focus. Women’s fashion is there to be still, but moves into the Background. You contributed last only 11 percent of the total revenue of the group, got under Langer’s predecessor, but a disproportionate amount of the marketing budget. At the next Fashion Show in New York, it will then go back to Boss-suits and not dresses or skirts.
DIGITAL UPGRADE – PRICES will BE ADJUSTED
Also, digital plans to upgrade the group. To this end, he revised his website, since October there is also an App that makes Shopping from your Smartphone is possible. So far, the Online trading contributes three percent of the total revenue. Where the share is to be, not shared with Hugo Boss. Also processes in the development, procurement, and distribution will in future have to run digital.
what is certain, however, that Hugo Boss is for the consumer in this country more expensive. The price differences, the gap currently between the continents, will reduce the group’s CEO. Price differences to be justified by tariffs, transport costs, or taxes.
Particularly cheap Hugo Boss clothes currently in Germany. Already in the course of this year, the group has raised the entry price for a suit, but at around 500 Euro. By the end of 2018 this is to be then, as in the Rest of Europe for around 600 euros. In Asia, where consumers for the same product significantly deeper into the pockets, to sink the prices.
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