Germany-based fashion house, Hugo Boss AG, has announced its plans to eliminate two brands (Boss Orange and Boss Green brands) and limit expansion of stores while it will expand its online business. It’ll only produce apparels under the Hugo and Boss brands, contracting its focus to casual wear and business wear.
Mark Langer, Chief Executive Officer of the company, reportedly said, “We have placed a too-strong focus on a push into luxury price points and we have to make sure we are perceived as a lifestyle brand beyond our suiting capabilities.” Langer further predicted that 2017 will be a year of stabilization after an expected fall of up to 3 per cent in currency-adjusted sales this year, predicting a return to growth in 2018.
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The fashion retailer will also continue to bring the prices of its goods in several regions in line, leading to further cuts in Asia and a slight rise in Europe, while prices should stay stable in North America. The move is expected to being the company back on profit making track.