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After a 17% drop in sales in the first quarter and a “significant impact” of the epidemic on its 2020 results, the time has come for the German manufacturer to recover. By appointing on Tuesday, June 16th Daniel Grieder – the former CEO of Tommy Hilfiger and the PVH Group – as the new CEO to replace Mark Langer, Hugo Boss hopes to reverse the downward trend and get back on the growth track. Here are some explanations.
After a very encouraging start this year, the group was hit hard by the impact of the coronavirus. Nearly half of its 150 points of sale “in mainland China, Macao and Hong Kong” were closed for long weeks and those that were not closed were forced to “ keep particularly restricted opening hours” resulting in “a significant drop in attendance“, the group reported in March.
But since the virus has become less virulent and Europe has eased lockdown, the giant Hugo Boss is counter-attacking and has just reached an agreement with Daniel Grieder, former boss of the American group PVH in Europe and former CEO of the Tommy Hilfiger brand, to replace Mark Langer who will leave the company on 30 September.
Position to be taken up in 2021
Hugo Boss therefore officially confirmed on Tuesday June 16 the appointment of Daniel Grieder as his new head. Daniel Grieder will take up his position as the new CEO of Hugo Boss on June 1, 2021, approximately one year after he left the American equipment manufacturer Tommy Hilfiger as Mark Langer is not expected to leave the Metzingen-based group before the end of September this year.
During this transition period, CFO Yves Müller will act as interim and official spokesman for the management board. He will therefore assume the function of CFO and CEO.
Grieder will assume his duties for a period of five years, a long mandate which the market leader in men’s apparel intends to make the most of in order to achieve a gradual normalisation of its activities from the second half of the year and make a fresh start in 2021.
An outstanding manager with international expertise
The 58-year-old businessman, who is of Swiss origin, was both the Global CEO of the American stylist Tommy Hilfiger and the boss of PVH Europe since 2014.
Under his management, Tommy Hilfiger Global increased retail sales from $6 to $9 billion between 2014 and 2019, and PVH Europe, which includes the Calvin Klein brand, has more than doubled its revenues and profits.
A manager who has therefore successfully managed high-end brands and contributed significantly to their success for many years, which is not insignificant for the German fashion house seeking leadership after having experienced some failures in recent years, particularly in its brand strategy.
The Swiss has also been able to adapt Tommy Hilfiger to the digital age: he was one of the first to introduce “See now, buy now” at fashion shows so that customers can order their clothes live from the catwalk. He has also been the driving force behind other innovative projects and has implemented a series of key sustainability initiatives.
A manager who therefore understands the challenges of a global group with several billion euros in sales while responding to expectations and interacting with millennials. A strong point knowing that Hugo Boss aims to push its Hugo brand forward, which is positioned in this customer segment.
So there is no doubt that Daniel Grieder was the favorite of the German giant and the “number one choice for the position of managing director” .
“His international expertise, charismatic personality and extensive global experience in brand management, product, distribution, marketing, and digitalization make him the ideal candidate” said Hugo Boss in a release. “He possesses all the qualities required to steer Hugo Boss back to sales and profit growth, and to increase the desirability of our brands for end-consumers” he added.
To this end, the German ready-to-wear group entered into negotiations with the Swiss executive at the beginning of June, just a few days after Grieder stepped down as CEO of Tommy Hilfiger Global and PVH Europe, in order to start discussions with him as quickly as possible and to convince him about his future role as CEO.
For his part, Daniel Grieder hopes to live up to this appointment and to what he calls a “fantastic organisation”, especially in these dark times for Hugo Boss and the fashion and luxury industry in general: “I’m arriving at an exciting time and eagerly looking forward to making my contribution to the further evolution of this German fashion icon. I will do everything in my power to exploit this potential and lead Hugo Boss into a successful future” he promised.
By the way, already at the beginning of June, the shares of the German luxury company had risen sharply just after the confirmation of its discussions with the Swiss entrepreneur.
In any case, Hugo Boss is looking for every possible opportunity for recovery and is getting prepared to start its rebound.
Read also > Hugo Boss announces departure of president and CEO next September
Featured photo : Hugo Boss
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