New Hugo Boss (BOSSn.DE) Chief Executive Daniel Grieder’s ambitions look lofty.
The former Tommy Hilfiger manager, at the helm of the German-listed brand since June, unveiled plans on Wednesday to double revenue to 4 billion euros by 2025.
Meanwhile, operating margins, he hopes, will return to a pre-pandemic 12% of sales. Both require Olympic-style sprinting abilities.
Hugo Boss, whose men’s suits sell at $700-plus, was hit hard by the health crisis, losing a third of revenue last year, Reuters reported.
Even if the group recoups much of that lost ground this year, Grieder will have to ensure that revenue grows at a compound annual rate of 12% until 2025.
That’s faster than the 11% annual projected average growth for top luxury goods brands such as Kering (PRTP.PA), LVMH (LVMH.PA), Moncler (MONC.MI) and Prada (1913.HK) to 2023, according to Breakingviews calculations based on Refinitiv estimates.
Much like Italian 100-metre gold medallist Lamont Marcell Jacobs, Hugo Boss will need to discover some unexpected pace.
