German luxury fashion brand Hugo Boss has forecast revenues to reach EUR 5 billion (USD 4.48 billion) by 2025, coinciding with low double-digit growth in its Asia-Pacific market.
The European company gave an update on its ‘Claim 5’ 2025 sales ambition, revealing it is on track to clock 11 percent CAGR over the next three years.
By market, Hugo Boss Asia-Pacific revenues are set to grow at a low double-digit CAGR until 2025, with the region’s revenue share to expand from currently 13 percent to around 20 percent over the next three years, for a revenue level of around EUR 1 billion.
In doing so, Hugo Boss plans on harnessing its “full potential” in China, with the market continuing “to be of particular importance.” In addition, Hugo Boss said it is equally committed to leveraging its “full potential” across Southeast Asia and the Pacific.
Moreover, Hugo Boss forecast EBIT to grow to a level of at least EUR 600 million by 2025, representing a strong CAGR of at least 21 percent compared to fiscal year 2022. Consequently, the company now has a target of an EBIT margin of at least 12 percent by 2025.
“With ‘Claim 5,’ we have introduced the right strategy at the right time. Thanks to the dedication and passion of our teams, we celebrated an impressive comeback and delivered exceptional results. This will enable us to reach our mid-term financial ambition of EUR 4 billion already this year, two years ahead of plan,” said Daniel Grieder, chief executive officer of Hugo Boss.
“Thanks to our powerful organizational setup, our unwavering commitment to sustainability, and our highly motivated and passionate teams worldwide, we are all the more confident of driving significant top- and bottom-line improvements also in the coming years.”