Hugo Boss is Dropping Its 2015 Profit Target

Hugo Boss is a German fashion label, which has abandoned their attempt to meet their projected profit target for 2015. This was brought on by a slowdown in the fashion market in China. This market has been waning because of a lack of economic growth as well as a government bribery crackdown. That doesn’t mean their growth is completely stalled, but it does mean that the past years of rapid growth in the double digits is over for now. The company is well known for their men’s suits, but a number of factors has caused them to stagnate. Namely, the huge shift towards less growth in Asia with a minor burst of improvement in the United States market. They are also taking on another investment by buying up stores where they can sell their products, as opposed to putting them up for sale in department stores. This is a trend that’s happening all over the fashion industry, as companies are realizing that there’s a lot more to be made when you can get it all from one label at one place. At department stores, there’s just more competition from other manufacturers, and it’s convenient competition as well.

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