A new partner, a new Chief Executive Officer and new strategies. Such is Hugo Boss recovery plan, based on a number of various initiatives. One of the main characters, during the current phase, is undoubtedly Frasers Group, controlled by British manager Mike Ashley. Two weeks ago, the company joined Hugo Boss capital assets as they bought out a 5.1% share.
Following that acquisition, they have now doubled their participation by carrying out a new deal. In the meantime, the German fashion house appointed Daniel Grieder as new Chief Executive Officer. Simultaneously, they have also announced they are planning to make a few investments in the online channel, aiming to expand both markets and turnover.
Hugo Boss recovery plan
In mid-June, Frasers Group, led by Mike Ashley, former Sports Direct chief executive, acquired a 5.1% share of Hugo Boss by purchasing stocks and derivatives whose total value amounted to around 100 million euros. At the beginning of July, they took further action as they doubled their shares. In fact, the group bought out one more 5% share of the company’s capital assets: they now hold 10.1% of it. They might be possibly thinking of a takeover bid: we will see how things go in the next few months. “Such investment mirrors a closer relationship between Frasers Group and Hugo Boss, along with a sound confidence in a long-term future”, remarked the group in a public statement.
Last month, on June 16, the top managers of the German company appointed Daniel Grieder as new Chief Executive Officer. The manager, who is going to replace Mark Langer, will take office on 1st June 2021: he will lead the company in the following five years. Besides that, Hugo Boss board of directors appointed Oliver Timm as new Chief Sales Officer: he will officially take office on 1st January 2021. As chief sales officer, illustrated the company in a press release, he will oversee the group’s retail sales, wholesale activity and e-commerce.
Over his career, Timm variously performed his duties as manager at PVH, where he also worked as managing director, in charge of the German market, from 2005 until 2014. In 2016, he was appointed as PVH Europe Chief Commercial Officer: he therefore played a prominent role, of paramount importance, while leading the advertising and marketing strategies of two brands, namely Tommy Hilfiger and Calvin Klein.
While announcing Timm appointment, Hugo Boss top managers also illustrated the prospective expectations they place right on e-commerce sales. “Our aim is to create, within 2022, new online sales to reach, in terms of revenues, over 400 million euros (for the records, in 2019 they reached 151 million euros, editor’s note) – remarked the group at Metzingen headquarters –. Aiming to achieve this goal, the group is taking advantage of hugoboss.com entire potential; at the same time, they keep striving hard to expand their own franchise activity”.
Such expansion will also apply to geographical areas. At present customers may already purchase the whole of products by Boss and Hugo brands on hugoboss.com in 15 countries, including, among others, the United States, the United Kingdom, Germany, France and China. The company aims at reaching 24 business markets by the end of the year.
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