(Bloomberg)—Hugo Boss AG is taking a cue from Zara owner Inditex SA (No. 500 in the Internet Retailer 2018 Top 1000) to further its transition from conservative suitmaking toward a faster-fashion model.
The German clothier said it would sharpen its focus on consumer trends by speeding up production, personalizing its clothes more and boosting e-commerce.
Hugo Boss is trying to dispel the fashion mistakes that dogged performance in 2015 and 2016. Sales growth should average 5-7% excluding currency movements over the next four years, the retailer said.
“The challenge is recruiting younger consumers,” wrote Piral Dadhania, an analyst at RBC Capital Markets.
Speed has become crucial not only for fast-fashion makers like Inditex’s Zara but also the premium end of the clothing market. Hugo Boss replaced its chief executive officer in 2016 and since then, successor Mark Langer has been focusing the suitmaker on casualwear. Yves Mueller joined as chief financial officer this year.
Langer and Mueller also set a goal for an operating margin of 15% by 2022.
Hugo Boss plans to depend more on Asian growth, where it forecasts sales to rise at least 10% a year through 2022, particularly in China. The region makes up 15% of the company’s sales now.
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