German fashion brand Hugo Boss aims for €5 bn revenue by 2025

In addition to its top-line ambition, Hugo Boss forecasts significant improvements in earnings before interest and taxes (EBIT). The company aims to grow EBIT to at least €600 million by 2025, a jump from the prior target of around €480 million. This corresponds to a robust CAGR of at least 21 per cent compared to the fiscal year 2022. Consequently, Hugo Boss is now targeting an EBIT margin of at least 12 per cent by 2025, the company said in a press release.

These ambitious targets reflect the company's updated gross margin projections, which now exceed initial expectations. The gross margin is anticipated to range between 62 per cent and 64 per cent until 2025, up from the previous estimate of 60 per cent to 62 per cent. This adjustment mirrors the ongoing surge in brand momentum as well as additional efficiency gains expected in operations.

Two years after the introduction of its ‘Claim 5’ growth strategy, Hugo Boss has reported significant progress across all five strategic priorities. The strategy's execution and branding refresh initiated in 2022 have accelerated momentum for both the Boss and Hugo brands.

To deliver on these ambitious 2025 financial targets, Hugo Boss will continue to invest in its business and rigorously execute its ‘Claim 5’ strategy.

“Our ‘Claim 5’ strategy provides us with a strong foundation for the sustainable, long-term success of Hugo Boss,” said Daniel Grieder, CEO of Hugo Boss. “Thanks to our powerful organisational setup, our unwavering commitment to sustainability, and our highly motivated and passionate teams worldwide, we are all the more confident of driving significant top- and bottom-line improvements also in the coming years.”

Fibre2Fashion News Desk (DP)