# Hugo Boss shrugs off weaker U.S. sentiment
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2023-06-15
Category: NEWS
Category URL: https://financedigest.com/category/news
Meta Title: Hugo Boss Raises 2025 Sales Target Amid U.S. Weakness
Meta Description: Discover how Hugo Boss is defying weaker U.S. consumer sentiment and aims for 5 billion euros in annual sales by 2025 with a strategic brand revamp.
URL: https://financedigest.com/hugo-boss-shrugs-off-weaker-u-s-sentimenthtml

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# Hugo Boss shrugs off weaker U.S. sentiment

By Linda Pasquini

(Reuters) -German fashion house Hugo Boss on Thursday raised its 2025 sales target, betting on strong demand across its markets as it proved immune to weaker U.S. [consumer sentiment](https://www.financedigest.com/unilever-downbeat-on-europe-china-consumer-sentiment.html "Unilever downbeat on Europe, China consumer sentiment").

The [company now aims for annual sales](https://www.financedigest.com/aragon-the-decentralized-management-platform-for-companies-announces-token-sale.html "ARAGON, THE DECENTRALIZED MANAGEMENT PLATFORM FOR COMPANIES, ANNOUNCES TOKEN SALE ") of 5 billion euros ($5.4 billion) by 2025, compared to the previous target of 4 billion euros, which it expects to meet this year.

Hugo Boss has undergone a brand revamp under the leadership of former Tommy Hilfiger head Daniel Grieder, [investing in marketing to boost sales and expand](https://www.financedigest.com/ntt-data-announces-strategic-investment-and-expands-business-alliance-with-marklogic.html "NTT DATA Announces Strategic Investment and Expands Business Alliance with MarkLogic") market share.

It also [targets operating](https://www.financedigest.com/catering-group-sodexo-targets-operating-margin-above-6-in-2025.html "Catering group Sodexo targets operating margin above 6% in 2025") profit (EBIT) of 600 million euros by 2025, up from a previous goal of around 480 million, and an EBIT margin of at least 12% versus a previous forecast of around 12%.

The company, whose brands have been gaining traction among younger consumers thanks to targeted social media campaigns, said it would keep marketing spend at 7% to 8% of group sales until 2025.

Grieder said he still sees “very promising” [growth rates](https://www.financedigest.com/food-grade-phosphates-market-regional-industry-segmentation-analysis-by-production-consumption-revenue-and-growth-rate-by-2027.html "Food Grade Phosphates Market Regional Industry Segmentation, Analysis by Production, Consumption, Revenue and Growth Rate by 2027") in the U.S., in contrast with luxury and retail peers flagging weakening [consumer spending](https://www.financedigest.com/the-impact-of-consumer-spending-on-the-market-2.html "The Impact of Consumer Spending on the Market") there.

While cracks are clearly visible in the US consumer environment and to a lesser extent in Europe, [Hugo Boss](https://www.financedigest.com/frasers-hugo-boss-exposure-falls-to-691-million.html "Frasers’ Hugo Boss exposure falls to 1 million") has been immune so far,” Citi analysts said.

The world’s [top consumer](https://www.financedigest.com/the-top-strategies-for-investing-in-the-consumer-goods-industry.html "The Top Strategies for Investing in the Consumer Goods Industry") and luxury goods companies started 2023 strongly as demand in China recovered, but worries remain regarding U.S. [growth and a possible slowdown in China’s](https://www.financedigest.com/oil-slides-more-than-1-on-china-growth-uncertainties.html "Oil slides more than on China growth uncertainties") post-COVID rebound after factory activity dropped in May.

In the Asia-Pacific region, Hugo Boss expects revenue to grow at a low double-digit percentage rate annually between 2022 and 2025, and aims to grow the region’s share of sales from the current 13% to around 20%, or 1 [billion euros](https://www.financedigest.com/axa-unilever-to-join-new-1-billion-euro-regenerative-agriculture-fund.html "AXA, Unilever to join new 1 billion euro regenerative agriculture fund"), by 2025.

Unleashing the brands’ [full potential in China will continue to be of particular importance,”](https://www.financedigest.com/britain-delays-full-post-brexit-import-checks-until-late-2023-2.html "Britain delays full post-Brexit import checks until late 2023") the group said.

Hugo Boss shares, which have gained around 46% over the past year, fell slightly, down 1.5% .

($1 = 0.9247 euros)

(Reporting by Linda Pasquini and Elizaveta Gladun in Gdansk; Additional reporting by Helen Reid in London; editing by Milla Nissi, Jason Neely and Christian Schmollinger)


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