HUGO BOSS will elevate OPEX to boost efficiency & decision-making

HUGO BOSS will elevate operational excellence (OPEX) across the value chain by leveraging past investments to fuel long-term growth, profitability, and cash generation. That’s according to the German premium fashion company’s latest strategic direction announcement.

Key OPEX priorities include driving sourcing efficiency through ongoing vendor optimization, a sea-freight-first approach, and shorter lead times. In parallel, the company will enhance its planning capabilities and enable faster, smarter decisions through technology and artificial intelligence (AI).

HUGO BOSS will also maximize the benefits of its expanded automated logistics network and strengthen back-end efficiency through streamlined processes and automation.

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HUGO BOSS plans to elevate OPEX

For HUGO BOSS, 2026 will serve as a year of realignment, strengthening the business by streamlining processes, refining assortments, and optimizing the distribution network, the firm stated.

At the same time, HUGO BOSS will significantly accelerate free cash flow generation, forming the foundation for continued shareholder returns. To deliver against this, execution will center on three key fields of excellence: brand, distribution, and operations. These priorities will boost efficiency and set the stage for renewed top- and bottom-line growth from 2027 onward.

“Since 2021, we have repositioned our Company with CLAIM 5, creating a strong foundation for the future. We have refreshed our two brands and invested extensively in our organizational platform,” said Daniel Grieder, CEO of HUGO BOSS. “Following the successes of recent years, we are now deliberately taking a step back to prepare for tomorrow’s growth.”

The organization’s focus in the coming years will be on the ongoing optimization in the areas of brand, distribution, and operations with the clear ambition to transform them from “great to excellent,” Grieder added. “Next to strong cash generation, this will drive sustainable profitable growth and long-term value for our shareholders. Our vision is clear: to be the premium, tech-driven, customer-centric global fashion platform.”

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2026 a year of consolidation and realignment for HUGO BOSS

2026 will be a an important step toward positioning HUGO BOSS for long-term profitable growth,” commented Yves Müller, chief financial officer and chief operating officer at HUGO BOSS.

“While we expect a temporary decline in sales, we will continue to drive our efficiency agenda along the value chain to safeguard margins and strongly accelerate cash flow generation. With this stronger financial foundation, we are well positioned to return to top- and bottom-line growth from 2027 onward and progress toward our long-term EBIT margin ambition of around 12 percent, reinforcing our commitment to delivering value to all shareholders.”

Against the backdrop of deliberate brand and channel realignment, currency-adjusted sales are expected to decline mid- to high-single digits in 2026, before returning to growth in 2027, and accelerating in 2028.

Image credit: HUGO BOSS

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