Hugo Boss: Claim 5
Quality offensive the 4️⃣.
Today we look at a stock that has become one of my favorites after all 💓, Hugo Boss
- 1. numbers
- 2. claim 5
- 3. collaborations
- 4. Q1 2022 and outlook
- 5. sources
- 6. recommendations of the week
1. numbers:
(18.06.)
Share 47.42 euros
Market cap. 3.4 billion
P/E RATIO 19.5
2021 Sales 2.8 billion
2021 EBIT 228 million
2022e Sales 3.2 billion
2022e EBIT 285 million
2025 Target sales 4 billion
2025 Target EBIT:480 million
Div. return 1.46%
2. claim 5
With Claim 5️⃣, Boss has given a name to the growth strategy until 2025 published in 2021.
"HUGO BOSS' strategy aims to achieve the vision and aspiration of being the world's leading technology-driven fashion platform in the premium sector and one of the world's top 100 brands."
The Boss and Hugo brands are to be given a new image. Hugo is to be the first "point of contact"
👉👈 for younger customers and be a streetwear brand, while Boss is to grow as a more elegant, more adult brand. In marketing in particular, Boss has grown significantly and is relying on two avenues here: social media and "extraordinary collaborations"
(which I'll list later)
With Boss and Hugo, "the full potential of casual wear" is to be exploited in the premium segment. Furthermore, the boundary between Casual🙍♂️ and Formalwear🕴️ will be loosened, while at the same time the formalwear business will be strengthened.
Hugo Boss wants to choose a hybrid path, i.e., on the one hand, sales in stores are to be increased to 2 billion, and on the other hand, the online business is to bring in the also 2 billion.
But Hugo Boss does not only want to profit from digitization in sales
"The company has set itself the goal of developing over 90% of its products digitally by 2025 and reducing lead times by around 30%. "
3rd collaborations:
In order to attract the younger generations, Hugo Boss relies on a frequently changing product range, but also on many cooperations with well-known brands. These collaborations are intended, among other things, to increase emotional loyalty to Hugo Boss.
Cooperations currently included in the store:
- Boss X Freddie Mercury 🎶 (should be self-explanatory).
- Hugo X Mr. Bathing Ape 🙈(streetwear brand, goodies included speak to engagement with the target audience)
- Boss X Porsche 🚗 (the Porsche brand stands for high-quality sports cars as well as for qualitative designer pieces mi Porsche Design. Products clearly located in the higher price segment)
- Boss x Kabe Lame (well-known TikTocker, known for this gesture: 🤲
The target groups seem to be well analyzed and served (including included goodies), which ensures a long-term commitment and correspondingly close growth.
Also sells Hugo Boss some particularly sustainable collections, which are made from recycled and partly new cotton from Africa particularly ethically and environmentally friendly. By 2030, 80% of the entire collection should be inserted in this cycle.
4. Q1 2022 and outlook
The Q1 figures were summarized as "de facto strong" by the shareholder, the figures are in line with the forecast path of Claim 5, the only disappointment for investors was that the forecast was not increased. So far, everything seems to be on track and the target of Claim 5 realistic.
But now to the outlook:
Hugo Boss states that despite the current geopolitical situation, the targets for 2022 will be adhered to, although I am of the opinion that the current financial situation will slightly burden the business, but in contrast to Asos, for example, the business is significantly less affected, this is due to two factors:
Hugo Boss is in a higher price range than the average, this has the advantage that people who buy exclusively in the higher price range are usually less affected by financially difficult situations such as currently, as well as the consumption is only limited. Again nearly Fashion is usually clearer about consumption, whose "enjoyment" is popular mainly with lower einkommen, in its way but so easy to recognize that here very quickly costs are saved by consumers. Hugo Boss sets itself apart from this segment.
But Hugo Boss also has a second advantage: In a difficult situation, street wear in particular is often reduced in terms of cost, while in the formal wear segment there is increased consumption, because in some cases, in order to stand out positively and not be fired, people invest in higher-quality workwear (which includes Hugo Boss suits in particular). By being represented in both segments, a case of Hugo Boss is significantly slowed down.
(for evidence of the phenomenon of increased formal wear consumption, please read my post on indexes).
5. sources
https://group.hugoboss.com/de/investoren/investment-case/ausblick-ziele
https://group.hugoboss.com/de/unternehmen/strategie
https://geschaeftsbericht-2021.hugoboss.com/
6. recommendations of the week
I will mark from now on under my longer posts in each case 3 people who also make quite cool content, so you can also like to stop by:
😎 @Lorena
Thank you for reading 🙃
(hope I can help you with the post about crypto weekend😅)
