Leading German fashion company Hugo Boss might be leaving its recent troubles behind.
Selling like hot cakes
Whilst sales were up only 2% in the US, there was an almost 15% jump in China.
It’s all down to “the plan”
After a series of profit warnings, this quarter’s results beat expectations.
That was down to price realignments: the company is now being more competitive with its European and US rivals. There’s also a corporate restructure that’s starting to have a positive effect. And by attracting more millennials, the fashion house is broadening its appeal.
Then there’s online
Hugo Boss has beefed up its online presence. It has made its websites load faster. It offers entry level priced goods. And it appears higher on search engine results. Clearly, the strategy has paid off: online sales were up almost 10%.
European tourism and Chinese demand are predicted to give the luxury sector a lift over the coming 12 months. However, the firm’s playing it cool: they expect sales growth to flatline in 2017/18 and to only start outpacing the rest of the market by 2019.