Hugo Boss Losing Steam?
Hugo Boss is a fashion brand that is surely among the elite group of fashion designers known in the world today. But don’t tell that to the economic crisis bug as it looks like Hugo Boss may find itself cutting down to make sure that they don’t drown alongside other big corporate names that have made drastic changes to keep afloat.
German fashion house Hugo Boss is tightening its belt to cope as shoppers lose appetite for high-end menswear. The firm said it would cut its expansion by almost 50.0% in Western Europe and improve its profitability for this year following a 27.0% drop in net income for 2008.
The company said it would target sales outside the ailing Western European economies, to nearly half of its total, including an aggressive move into China. “Our stated target for the coming years remains to generate sustained positive development in our international markets, and particularly to increase our share as a percentage of total sales in the dynamic regions of Asia, Eastern Europe and North America,” said Chief Executive Claus-Dietrich Lahrs.
Hugo Boss “is being rather cautious as it tries to save cost. A good thing in this environment,” said Hamann. “It will be challenging for the company because clothing retailers are heavily exposed to a sharp decresase in consumer spending.”
Retailers have been under pressure to slash costs and launch aggressive promotions to attract costumers, who have scaled down or cut back on their shopping as a result of the global financial crisis.
(Source) Forbes
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- Posted in Clothes, Fashion Designers, Fashion News, Wardrobe on March 27th, 2009
