Hugo Boss has recently announced its plans to abandon the luxury segment and return to selling premium men’s clothing, via newly appointed CEO Mark Langer. “The effort to make in-roads in the luxury market didn’t prove to be particularly helpful for our business,” Mark Langer said in his first interview since taking over Hugo Boss.
Perhaps Langer is referring to the brand’s former boss Claus-Dietrich Lahrs and the massive worldwide expansion in the early 2010s. Placing a bigger focus on womenswear, Lahrs took opportunity to open 400 new stores worldwide when the luxury market boomed. This led to a substantial 6000 points of sale across 124 countries.
But as the luxury market is currently going through a harsh downshift that affects the US and Chinese markets most, the declining situation prompted Lahrs’ resignation and Langer’s change in the brand’s business model. Langer also plans to close the brand’s unprofitable stores.
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