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Group strategy

HUGO BOSS has set itself ambitious sales and earnings targets. In order to reach its targets, the Group draws on its core competence – the development and marketing of high-quality apparel, as well as shoes and accessories in the premium and luxury segment. Building on this, the Group's strategy aims to maximize brand attractiveness and to strengthen parts of the product range that have had a less profiled presence so far, to increase retail competence and to further expand the Group's own retail business, to capture global growth opportunities as well as to improve critical operational processes.

Clear sales and earnings targets defined

The successful development of business in the past years underscores the strength of the HUGO BOSS business model. This serves as the foundation for reaching the ambitious growth targets. Drawing on organic growth, the Group strives to generate sales of EUR 3 billion in 2015. The operating margin is targeted to continually increase and to reach 25% in the medium-term. The planned increase in earnings, together with the strict management of trade net working capital as well as disciplined investment activity will form the basis for targeted maximization of free cash flow and, in turn, increasing enterprise value.

Growth strategy based on four pillars

In order to sustainably increase sales and earnings, HUGO BOSS has identified four key growth areas for which strategic initiatives have been defined. The aim is to maximize brand attractiveness and to strengthen parts of the product range that have had a less profiled presence so far with appropriate product initiatives and a compelling brand communication. A strict customer-centric approach supports productivity gains in the Group's own retail business, the expansion of which is being driven forward. Furthermore, the Group sees substantial growth potential worldwide that should lead to a more balanced regional sales structure in the long term. Finally, operational processes are to be strengthened further.

Medium-term growth strategy

Medium-term growth strategy (pie chart)

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