Hugo Boss: Claim 5
(english version)
Today we look at a stock that has become one of my favorites after all 💓, Hugo Boss
This is a tranlated post. The og german post is here:
https://app.getquin.com/activity/MPdIVfgumm?lang=de-DE&utm_source=sharing
1. numbers
2. claim 5
3. collaborations
4. Q1 2022 and future
1 Numbers
(7.7.22)
Share 52.52 euros
Market cap. 3.5 billion
P/E RATIO 20.02
2021 Sales 2.8 bn
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 1.41%
2. Claim 5
With Claim 5️⃣, Boss has given a name to the 2021 Published Growth Strategy until 2025.
"The HUGO BOSS strategy aims to achieve the vision and aspiration of being the world's leading technology-driven fashion platform in the premium segment and one of the world's top 100 brands."
The Boss and Hugo brands are to be given a new image. Hugo is to serve as the first "point of contact" 👉👈 for younger customers, to 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 "exceptional 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 way, that is, on the one hand, sales in stores should be increased to 2 billion, and on the other hand, the online business should bring the also 2 billion.
But Hugo Boss doesn't just want to benefit 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%. "
3. 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 ensure an increased emotional attachment to Hugo Boss.
Cooperations currently included in the store:
Boss X Peanuts
Boss X Freddie Mercury 🎶 (should be self-explanatory).
Hugo X Mr. Bathing Ape 🙈(streetwear brand, goodies included speak to engagement with 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: 🤲
#mr.BathingApe
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 future
The Q1 figures were summarized as "de facto strong" by Der Aktionär, 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 maintained, although I believe that the current financial situation will slightly burden the business, however, 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).
Sources are in the original post