Hugo Boss has lowered its 2015 profit target due to slowing economic growth rates.
The company is keeping a target to reach sales of €3bn (£2.5bn) in 2015, but has said it will no longer be able to reach a 25% EBITDA margin as a percentage of sales, which would have reached €750m (£628m).
At an investor day in Hong Kong on November 26 the company stated economic growth rates were slower than expected when the group set its targets in 2011.
Hugo Boss is seeking growth through further expansion and “enhancement” of its own store network, with more than 60% of sales expected to come from its own retail stores in 2015, compared with a previous forecast for 55%.
Hugo Boss highlighted womenswear as a route for growth for the brand following the appointment of Jason Wu as the artistic director for Boss Womanin June.
Wu’s influence will “activate existing sales potential in a more targeted manner than in the past” for the womenswear division, the group said.
Claus-Dietrich Lahrs, chief executive of Hugo Boss, said: “In the last few years we have strengthened Hugo Boss as a global brand and geared it more directly to consumers. Today, customers experience our brand world as even more high value. It is therefore the right decision to invest in the strength of our brands and distribution, thereby creating very good long-term growth prospects for the company.”
As reported by Drapers last week, Hugo Boss will also extend its presence in House of Fraser and John Lewis in 2014 as it seeks to improve profitability in a saturated UK market.