The experienced fashion manager brings glamor back to the company headquarters in Metzingen.
(Photo: Hugo Boss Group)
Daniel Grieder’s spectacular move from Tommy Hilfiger to Hugo Boss seems to be working better and better. Thanks to a strong Christmas business with growth of over 50 percent, the fashion group’s final quarter was the best in the company’s history, Boss announced on Tuesday.
After the restrictions imposed by the pandemic, 98 percent of Boss stores were open again. “We have greatly accelerated our sales and earnings development over the course of the year,” explained Grieder.
According to preliminary figures, the fashion group has also exceeded the increased annual targets, as announced by Hugo Boss. Only one percent is missing from the pre-crisis level of 2019. Adjusted for currency effects, sales increased by 43 percent to 2.78 billion euros.
After a loss of 236 million euros in the previous year, Boss was able to post a profit of 228 million euros in operational terms. Since the recovery from the pandemic was already becoming apparent, the ex-Hilfiger boss increased the forecast from 30 to 40 percent growth last autumn. The EBIT was then estimated at up to 200 million euros. But in the final quarter alone, Boss was able to report an EBIT of 100 million euros.
Top jobs of the day
Find the best jobs now and
be notified by email.
Grieder also sees a reason for the upward trend in the growing online business, which now accounts for a fifth of sales. Due to a non-competition clause, Grieder only had to take a year off before he could start his job in Metzingen in June 2021.
During the transition period, the marketing guru had plenty of time to think about strategy and presented these in an online conference at the beginning of August. The Swiss has set ambitious goals for the company. The brand should aim for four billion euros in sales. The CEO, who has been in office since June, is aiming for an EBIT margin of around twelve percent by 2025.
Largest marketing campaign in company history
For him, the latest figures are the basis for this. In the coming weeks, Grieder wants to launch a new brand image – “with the largest marketing campaign in our company’s history”. For the expansion of the online business and the renewal of the stationary retail trade, he wants to spend 500 million euros in the coming years. In addition, Grieder wants to spend 100 million euros on marketing and 150 million euros on digitization, from which he has particularly high hopes.
The brand should become more relevant, especially for younger fashion buyers. Grieder himself likes to wear suits made from comfortable stretch fabrics and high-quality sneakers. The fashion from Metzingen should become looser and more comfortable. With Tommy Hilfiger, Grieder overtook Hugo Boss because he consistently focused on casual fashion there.
Above all, Hugo Boss has a better grip on the important US market. Sales there are 15 percent above the pre-crisis year of 2019, and China grew by 18 percent. In Europe, too, business was much better with an increase of eleven percent. Whether it’s a business, casual or classic look – the times when the exclusive collections from Hugo Boss were spurned seem to be over for the time being.
Share price more than doubled
Investors have long considered the new boss savior Grieder with advance praise. After the share slipped to 19 euros during the pandemic, the price has been continuously above 45 euros since Grieder took office at the beginning of June and is now over 52 euros.
In any case, Grieder’s commitment has already paid off for investors. However, there is still room to reach the highs of over 110 euros. The imagination of the most optimistic analysts only extends to 70 euros for the time being. The company has not yet dared to make a forecast for this year. They should come to the final figures on March 10th.
With Grieder’s person, more glamor is moving into the corporate headquarters at the foot of the Swabian Alb. The fashion designer can not only stage a brand, but also his private life.
During a helicopter trip last year, he landed above Mürren in the Bernese Oberland (Switzerland) directly in front of a glacier and proposed to entrepreneur Louise Camuto on his knees, as he confided to the Swiss newspaper “Blick” together with a photo. The former Miss Sweden was married to shoe entrepreneur Vince Camuto (“Nine West”) until his death in 2015. According to Grieder’s mentor, the couple brought Tommy Hilfiger together in 2019.
More: How the new Hugo Boss boss wants to trim the fashion group for growth