- Hugo Boss wants to save money after a profit slump
Fashion conglomerate Hugo Boss is set to cut costs following a decline in profits in the second quarter. CEO Daniel Grieder announced this while presenting final figures, stating that the company is taking into account the current market conditions and will strengthen its cost discipline. Alongside potential savings in procurement, the company aims to reduce costs in areas such as distribution, marketing, and administration. Additionally, the cost structure in retail will be adjusted to align with current footfall trends.
These measures are expected to significantly support the company's profit development in the second half of the year, Grieder said. A weaker consumer sentiment and higher costs for marketing and brick-and-mortar retail led to declining revenues and a profit decline in the second quarter. At the bottom line, Hugo Boss earned 37 million euros, roughly half of the previous year's figure. The company had already presented preliminary figures in mid-July and revised its forecast for the full year.
Hugo Boss, the renowned fashion conglomerate, has decided to reduce costs in its marketing and administration departments, as part of its strategy to cut costs altogether. In an effort to improve its financial situation, Hugo Boss, represented by CEO Daniel Grieder, is also considering potential savings in procurement and adjusting its retail cost structure.
