Hugo Boss to close stores as cost-cutting measure - leatherbiz: Leadin Leatherbiz

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Hugo Boss to close stores as cost-cutting measure

08/08/2016
Fashion brand Hugo Boss is to close 20 more of its stores around the world as part of a cost-cutting exercise in response to a dip in sales. In March the company announced it would close 20 stores in China.

The company said that conditions for sales in the second quarter of 2016 were “very difficult”. Sales fell 4% compared to the same period of 2015 to €622 million. Net profit was down 84% to €11.1m. It expects sales for the whole of 2016 to remain stable or decline by up to 3%. Previous forecasts predicted a low single-digit increase in sales.

Mark Langer, who replaced Claus-Dietrich Lahrs as CEO in May, said that Hugo Boss had to make “decisions that are painful to begin with” in order to return to profitable growth in the future.

“These include the closure of stores and a structural change of our distribution in the US wholesale channel,” he added.


Related stories:

Hugo Boss targets “sustainable growth” 03/11/2016
Hugo Boss takes a step back from the luxury market 26/10/2016
Hugo Boss names new CEO 18/05/2016
Hugo Boss to cut costs after sales dip 04/05/2016
Boss at Hugo Boss to leave 18/02/2008

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