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METZINGEN, Germany — Hugo Boss AG forecast an acceleration in sales and profit as the German clothier aims to personalise its offerings more and speed up its reaction time to trends.
Sales should rise by 5 percent to 7 percent annually on average excluding currency movements over the next four years, and operating profit should beat that, Hugo Boss said. The company aims for an operating margin of 15 percent by 2022.
Key Insights
Analysts may appreciate the detail in the forecast, as the company formerly guided merely to sales outperforming the market from 2019 onward and an improving operating margin.
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The new forecast comes after Hugo Boss walked away from its long-range goal for an earnings before interest, tax, depreciation and amortisation margin of 25 percent in 2015 when the company’s growth sputtered out.
The clothier also aims to lean more on online growth, forecasting its own e-commerce revenue to quadruple by 2022.
Market Reaction
The stock has dropped 11 percent this year.
By Thomas Mulier; editors: Eric Pfanner, Thomas Mulier, Frank Connelly
