- 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 that the company is taking the current market conditions into account and will strengthen its cost discipline. Alongside potential savings in procurement, the company also aims to reduce costs in areas such as distribution, marketing, and administration. Furthermore, the cost structure in retail will be adjusted to reflect current visitor 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 in-store retail had led to declining revenues and a profit decline in the second quarter. In total, Hugo Boss earned 37 million euros, roughly half of last year's figure. The company had already presented preliminary figures in mid-July and lowered its forecast for the full year.
Hugo Boss, known for its fashion conglomerate, is considering cutting costs by strengthening its cost discipline, as the CEO acknowledged the impact of current market conditions. Despite potential savings in procurement and reductions in distribution, marketing, and administration costs, as well as adjustments to the retail cost structure, Hugo Boss anticipates a profit decline due to a weaker consumer sentiment and increased marketing and retail expenses.
