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Hugo Boss to discontinue Boss Orange and Boss Green as separate brands

Hugo Boss will discontinue the Boss Orange and Boss Green labels as independent brands, as part of its new turnaround strategy unveiled today.

The German fashion house will only operate two brands in future: the core Boss line and the entry-level price Hugo, which will be priced around 30% lower than Boss. It will integrate the Boss Orange and Boss Green labels into the core Boss range to offer a “consistent brand experience”.

It also plans to strengthen its market presence in casualwear through the younger, more fashionable Hugo brand.

The changes will be completed for deliveries of spring 18 collections.

The firm said that while womenswear will continue to be an important part of its core business, it will focus more closely on menswear. As such, it will only present Boss menswear at New York Fashion Week next year.

Designer Jason Wu will continue in his role as artistic director.

The global standardisation of Hugo Boss’s pricing architecture is ongoing and further adjustments are expected for 2018, which will result in more price decreases in Asia but a “slight rise” in average prices in Europe. The price structure in America will remain stable.

Any remaining price differences will be the result of disparities in transport costs, taxes and custom charges, it said.

The firm will also continue its retail, wholesale and online distribution structure but link the channels more closely. It will increase the casualwear range in its own stores, as well as upgrading and expanding its entry-level price range collections.

Hugo Boss said its store expansion programme will slow down considerably.

The firm has already introduced an €65m (£56m) cost-saving programme this year and expects to return to growth in 2018.

“By further developing our strategy we want to steer Hugo Boss back toward sustainable growth,” said chief executive Mark Langer, who was promoted from chief financial officer in May.

“We are sharpening our presentation and focusing on our customers’ needs more consistently.

“In Boss and Hugo we have two strong brands with their own identity, which appeal to different target groups. With Boss we want to be the most desirable brand in the upper premium segment. Positioning Hugo in future as a progressive brand with an attractive value proposition will open up extra growth possibilities for us.”




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