BERLIN, Aug 4 (Reuters): The new chief executive of German fashion house Hugo Boss (BOSSn.DE) set an ambitious target on Wednesday to double sales to 4 billion euros ($4.75 billion) and improve the operating profit margin to 12 per cent of sales by 2025.
Hugo Boss, which has been hit hard by coronavirus lockdowns, also reported a rebound in sales in the second quarter, particularly in Britain and China.
CEO Daniel Grieder, the former Tommy Hilfiger boss who took over in June, said it was his ambition to make Hugo Boss one of the world's top 100 global brands, with marketing spending set to be more than 100 million euros between now and 2025.
The company said it would pursue its existing strategy of trying to become more appealing to younger consumers and would also seek to double sales of women's fashion by 2025.
Hugo Boss, known for its smart men's suits, wants ecommerce to account for 25-30 per cent of sales by 2025 from about 16 per cent now. It also plans to refurbish around 80 per cent of its stores, costing around 500 million euros by 2025.
Shares in Hugo Boss rose 1.9 per cent at 0830 GMT.
The company said its core Boss brand saw second-quarter sales down a currency-adjusted 5 per cent, while Hugo, aimed at a younger audience, reported a 2 per cent rise in sales.
While sales of casual styles continued to accelerate, as the working-from-home trend boosts more relaxed dressing, Hugo Boss said it had also seen a recovery in sales of formal wear due to pent-up demand for business and party fashion.
Hugo Boss, which had already reported preliminary second-quarter results last month, said sales were up 7 per cent in the United Kingdom, compared with 2019, and up 33 per cent in mainland China.
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