Hugo Boss has rolled out an updated roadmap for its next stage of expansion, introducing the Claim 5 Touchdown strategy. The plan sharpens the company’s focus on brand strength, distribution quality and operational efficiency through 2028.
The original Claim 5 program, launched in 2021, aimed to double sales to four billion euros by 2025. Stronger-than-expected demand allowed the company to reach that goal two years early, closing fiscal 2023 above the target. Building on the momentum, Hugo Boss raised its 2025 ambition to five billion euros.
Chief Executive Daniel Grieder said the company is now preparing for its next leap. He described the coming period as a reset designed to fine-tune core functions and lift performance. “Our goal is to take the brand from great to excellent,” he said.
Realignment Phase Begins in 2026
A major shift begins in 2026, when Hugo Boss will reorganize parts of the business to simplify processes, adjust assortments and rework its distribution network. The company expects this transition year to generate stronger free cash flow and improve financial resilience.
Boss and Hugo have recorded a compound annual growth rate of 22 percent between 2020 and 2024. Executives say earlier structural investments have created a solid base for the next phase.
Brand and Distribution Priorities
The updated strategy places heavy emphasis on brand relevance and customer loyalty. Boss Menswear will hold its current position, while Boss Womenswear will center on a tighter, more distinctive core line. Hugo will refine its identity with a clearer brand message and more accessible products.
To support this shift, Hugo Boss is establishing dedicated menswear and womenswear teams across both labels. Marketing spending will move toward seven percent of group sales, with resources channeled into high-impact collaborations, including the ongoing Beckham x Boss partnership.
In retail, the company plans to reshape its store network to improve the shopping experience and drive productivity. Wholesale operations will become more selective, backed by closer ties with key partners and the expansion of franchise stores.
Digital channels remain a priority, with plans to widen reach and sharpen engagement. The brand also aims to strengthen its foothold in the United States and China while building on its strong position in Europe.
Supply Chain and Technology Upgrades
Operational improvements are central to the Touchdown plan. Hugo Boss will expand sourcing efficiencies through streamlined vendor partnerships, a larger use of sea freight and shorter lead times. The company is also upgrading planning systems with new technology and AI to speed up decision-making.
Financial Outlook
The company is targeting an EBIT margin close to 12 percent over the medium to long term. By 2028, annual free cash flow is expected to rise to about 300 million euros, nearly triple recent levels, helped by lower capital spending and stricter working-capital management.
Inventory levels are projected to fall to around 20 percent of sales by 2028. Hugo Boss expects a mid- to high-single-digit decline in currency-adjusted sales in 2026 due to the planned brand and channel reset, followed by a return to growth in 2027 and stronger progress in 2028.
Gross margin improvements are forecast to begin in 2026, supported by better sourcing, pricing measures and more full-price selling. EBIT for 2026 is expected to land between 300 million and 350 million euros, with gains anticipated from 2027 onward.
Chief Financial Officer and Chief Operating Officer Yves Müller said the 2026 transition year is essential for long-term success. “We expect a short-term dip in sales, but the actions we are taking will strengthen margins and significantly accelerate cash flow,” he said.