Champion® Athleticwear Unveils Second Capsule In Muhammad Ali Collection

WINSTON SALEM, N.C. — August 6, 2021 — Champion, makers of authentic athletic apparel since 1919, and Muhammad Ali Enterprises, today dropped the second, limited-edition capsule in Champion’s Muhammad Ali Collection. The capsule’s new designs and fresh colors are fabricated to evoke the ethos of the sports legend during his inspirational gold medal win during the 1960 Games in Rome as an 18-year-old.

With details based on the 1960 Games historic location and team uniforms, the apparel features unique athletic accents, iconic silhouettes, luxe fabrics and voluminous draping. The men’s and women’s collections, which retail from $35-$125 in the United States, spans sizes XS-2XL and includes Reverse Weave® hoodies, quarter-zip pullovers, joggers, shorts, graphic T-shirts, crop tops, bike shorts, hats and special satin boxing robe. The pieces have legendary quotes from Ali, including “I am the greatest, I said that even before I knew I was,” along with Games-inspired brand decals.

“Muhammad Ali was an artist in the ring and a champion of the people outside of it, inspiring his fans across the globe to be their very best,” said Jon Ram, group president of global activewear for HanesBrands. “The second drop in this collection allows everyone from professional athletes to backyard sports enthusiasts and culture curators to truly be their own Champion by finding the joy in dressing for self-expression and feeling confident while being comfortable.”

The second drop in brand’s multi-year partnership with Muhammad Ali Enterprises, owned by Authentic Brands Group (ABG) in conjunction with Lonnie Ali, a trustee of the Muhammad Ali Family Trust (MAFT), includes global integration across Champion’s brand platforms. The collection is being distributed via Champion.com and Champion retail stores with distribution in the United States, Europe, Asia, Mexico and South America. A third drop is scheduled for later this year to be followed by additional capsules in 2022.

“Ali would say: ‘Champions aren’t made in gyms, champions are made from something they have deep inside them — a desire, a dream, a vision,’” said Katie Jones, senior vice president, entertainment, ABG. “This partnership continues to honor what was most important to Ali during his lifetime.”

To celebrate the second drop of the Muhammad Ali Collection, Champion will be making a donation to the Louisville, Ky.-based Muhammad Ali Center, a non-profit museum and cultural center dedicated to honoring the man that meant so much to so many.

Posted August 6, 2021

Source: HanesBrands 

Montana Start-Up Company Revolutionizes Heated Gear: Launches Line Of Apparel That Provides Warmth And Comfortable Mobility

GREAT FALLS, Mont. — August 6, 2021 — H.E.A.T. — Heated Electronic Active Technology — a new start-up company based in Great Falls, Mont., officially launched a new line of technologically-advanced heated gear that’s expected to turn the winter apparel industry on its head.

“We didn’t set out to improve upon other or existing base layer apparel. We created a first-of-its-kind, vital body equipment you wear,” said Daniel Creach, H.E.A.T.’s ONE-LAYER designer.

Combining the most advanced and comfortable textiles, smartphone technology, and custom, ergonomically correct batteries. H.E.A.T.’s One-Layer smart system will finally give people who work or play outdoors in winter the protection they need from the cold — and the comfort and maneuverability to do their tasks safely.

“No more dangling cables to manage or layers and layers of clothing confining your movement,” Creach said. “All you have to do is use the One-Layer® app on any smart device to manage your own personal climate. From the use of FabRoc™, a proprietary heat technology, to the attention of every manufacturing detail, the One-Layer smart system will allow you to work safer, play longer, and go where the other guys can’t.”

H.E.A.T., Inc. was formed in 2016 with the goal of creating heated gear that effectively warms key parts of the body while also providing its wearers greater flexibility and movement than what’s currently on the market. The ONE-LAYER design and development team consists of experts with vast experience from iconic U.S. companies as well as the private sector.

Posted August 6, 2021

Source: H.E.A.T. (Heated Electronic Active Technology)

NRF: Retail Cargo Expected To Set Record In August As Merchants Move From Back-To-School To Holiday Preparations

SAN FRANCISCO — August 6, 2021 — Imports at the nation’s largest retail container ports should hit yet another record in August as consumer demand continues to stretch supply chains and retailers shift from the back-to-school season to the peak shipping season for winter holiday merchandise, according to the monthly Global Port Tracker report released today by the National Retail Federation and Hackett Associates.

“Back-to-school supplies have been hit by the same supply chain disruptions and port congestion that have affected other products this year, but retailers are working hard to ensure that school and college goods are where they need to be,” NRF Vice President for Supply Chain and Customs Policy Jonathan Gold said. “Strong consumer demand has outpaced supply chain operations since late last year and could remain a challenge as the holidays approach. The continuing lack of labor, equipment and capacity has highlighted systemic issues and the need to create a truly 21st century supply chain to ensure resiliency against the next major disruption. Passage of infrastructure legislation currently pending in Congress is a key step in that direction. We need continued focus by the administration to help address these issues as well.”

“The strain of the continuing economic expansion is putting considerable pressure on the logistics supply chain,” Hackett Associates Founder Ben Hackett said. “We’re seeing a lack of shipping capacity combined with port congestion as vessels line up to discharge goods from both Asia and Europe. Delays are stretching to landside as port terminals struggle with space shortages, and labor challenges are affecting ports, railroads and trucking companies alike. This part of the recovery is not a pretty sight.”

U.S. ports covered by Global Port Tracker handled 2.15 million Twenty-Foot Equivalent Units in June, the latest month for which final numbers are available. That was down 7.8 percent from May but up 33.7 percent from a year earlier, when many stores were closed because of the pandemic. A TEU is one 20-foot container or its equivalent.

Ports have not reported July numbers yet, but Global Port Tracker projected the month at 2.22 million TEU, which would be up 15.7 percent from the same time last year.

August is forecast at 2.37 million TEU, which would be up 12.6 percent year-over-year and top May’s 2.33 million TEU for the largest number of containers imported during a single month since NRF began tracking imports in 2002. August is the beginning of the “peak season” when retailers stock up on holiday merchandise each year. Many retailers are moving up their shipments this year as part of their risk mitigation strategies to ensure that sufficient inventory will be available during the holidays.

September is forecast at 2.21 million TEU, up 4.9 percent year-over-year; October at 2.15 million TEU, down 3 percent for the first year-over-year decline since July 2020; November at 2.07 million TEU, down 1.5 percent, and December at 2.02 million TEU, down 4.1 percent.

The first half of 2021 totaled 12.8 million TEU, up 35.6 percent from the same period last year. For the full year, 2021 is on track to total 25.9 million TEU, up 17.5 percent over 2020 and a new annual record topping last year’s 22 million. Cargo imports during 2020 were up 1.9 percent over 2019 despite the pandemic.

Global Port Tracker, which is produced for NRF by Hackett Associates, provides historical data and forecasts for the U.S. ports of Los Angeles/Long Beach, Oakland, Seattle and Tacoma on the West Coast; New York/New Jersey, Port of Virginia, Charleston, Savannah, Port Everglades, Miami and Jacksonville on the East Coast, and Houston on the Gulf Coast. The report is free to NRF retail members, and subscription information is available at NRF.com/PortTracker or Subscription information for non-members can be found at www.globalporttracker.com

Posted August 6, 2021

Source: The National Retail Federation (NRF)

Levi Strauss & Co. To Acquire Activewear Brand Beyond Yoga

SAN FRANCISCO — August 5, 2021 — Levi Strauss & Co. and Beyond Yoga — a fast-growing, premium athletic and lifestyle apparel brand based in the United States — today announced that they have signed a purchase agreement for the sale of Beyond Yoga to LS&Co. The transaction will be financed with cash and is expected to close during the fourth quarter of 2021, subject to customary closing conditions. Following closing of the transaction, additional financial and operational details will be provided.

This acquisition will bring the Beyond Yoga brand to more consumers through direct-to-consumer expansion, including brick-and-mortar retail, gender and category growth, and further development of the wholesale footprint with premium partners. With this transaction, LS&Co. enters the activewear category, complementing LS&Co.’s growing women’s business and enabling LS&Co. to allocate its global resources and infrastructure to significantly expand Beyond Yoga, building on its largely digital ecosystem. LS&Co.’s successful brand-building capabilities will help Beyond Yoga grow globally as it capitalizes on the continued consumer uptake of premium, casual and wellness trends.

“This acquisition establishes LS&Co.’s presence in the fast-growing activewear segment with a brand with tremendous growth potential,” said Chip Bergh, president and CEO of LS&Co. “The foundation the Beyond Yoga team has built, combined with LS&Co.’s resources, global reach and scale, make me confident that Beyond Yoga will become a powerful growth engine for LS&Co. and help drive our strategic priorities. Beyond Yoga’s values-led approach to business, centered on inclusivity and authenticity, makes it a natural fit to our company portfolio. We look forward to welcoming the Beyond Yoga team to LS&Co.”

“Beyond Yoga is an excellent addition to our brand portfolio and will accelerate our long-term growth algorithm,” said Harmit Singh, CFO of LS&Co. “The brand has more than doubled its revenue and grown profitability in a disciplined manner over the last three years. This acquisition further strengthens LS&Co.’s revenue trajectory, enhances our gross and EBIT margins and is immediately accretive to our earnings. Given our strong liquidity position, this transaction, which is consistent with our capital allocation strategy, allows us to profitably scale a high-return, digital business.”

Following completion of the transaction, Beyond Yoga will operate as a standalone division within LS&Co. Co-founder Michelle Wahler will continue to be CEO of Beyond Yoga and will report to Bergh.

“We are honored and excited to become a part of the LS&Co. family,” Wahler said. “Joining their portfolio will enable us to accelerate our growth by leveraging the experience and resources of their team and their global infrastructure. We are thrilled to have LS&Co. help us expand our brand to a wider audience, as we continue to promote our mission of inclusivity and acceptance for all.”

“I have always had one goal: to make women feel good in their bodies. Beyond Yoga was created with this mission in mind, and it has served as the touchstone of the company,” said Jodi Guber Brufsky, founder and chief creative officer of Beyond Yoga. “It was important to me that when the time came, the company would move into the hands of someone whose values matched ours. We are so excited about this partnership and look forward to a successful future.”

Posted August 5, 2021

Source: Levi Strauss & Co.

Delta Apparel Achieves All-Time Record Third Quarter Earnings

GREENVILLE, S.C. — August 5, 2021 — Delta Apparel Inc., a provider of core activewear and lifestyle apparel products, today announced exceptionally strong results for its third quarter ended July 3, 2021 (the June quarter).

Robert W. Humphreys, the company’s chairman and CEO, commented, “Our results reflect our strongest quarterly earnings performance on record. We surpassed our expectations as sales returned to pre-pandemic levels and gross margins continued to expand, highlighting the strength and resilience of our diversified business model.”

Humphreys continued: “While top line growth has been hampered by inventory constraints and labor shortages in our Delta Group segment, customer demand remains robust as we continue to expand our reach with large retail and global brand partners seeking the products and value-added services we can uniquely provide. Salt Life delivered record quarterly sales with strong, double-digit growth across its sales channels including over 150-percent growth in our direct-to-consumer channels compared to the third quarter of fiscal year 2019, highlighting the strength of brand’s omnichannel marketing initiatives.

“We are thrilled with our performance during the quarter as it highlights the benefits of our broad channels of distribution, the demand in the market for the unique products and services we offer, and the efficiencies we can achieve with our vertically-integrated operations. We believe the momentum we are experiencing is just the beginning and, coupled with our ongoing strategic initiatives, positions us well for continued growth and profitability expansion,” Humphreys concluded.

For the June 2021 quarter:

  • Net sales were $118.7 million, an increase of 65.3-percent compared to the prior year third quarter when operations were significantly impacted by the COVID-19 pandemic. Compared to the fiscal 2019 third quarter, net sales were relatively flat driven by a 36-percent increase in net sales in the Salt Life Group partially offset by a 5-percent decline in the Delta Group segment. June quarter sales grew 9.2 percent from the March 2021 quarter, and sales in both segments exceeded internal expectations.
  • The strong sales performance in the Salt Life business was driven by double-digit year-over-year growth in its wholesale, e-commerce, and branded-retail channels, with Salt Life retail doors driving sales growth of 250 percent from the third quarter of fiscal 2019. Delta Group net sales declined as inventory was not available to support the strong order demand, and labor shortages impacted U.S. production and distribution capacity.
  • Gross profit was $30.2 million compared to $3.0 million in the prior year third quarter. Gross margin improved to 25.5 percent versus 4.2 percent in the prior year, and 20.8 percent in the June 2019 quarter, driven by higher direct-to-consumer sales and the benefit of strategic pricing initiatives combined with lower product costs still flowing through cost of sales.
  • Selling, general and administrative (SG&A) expenses were $19.9 million, or 16.8 percent of sales, in the June quarter compared to $15.2 million, or 21.2 percent of sales, in the prior year third quarter, and $17.9 million, or 15.0 percent of sales, in the third quarter of fiscal 2019. The increase in SG&A compared to the third quarter of fiscal 2019 was driven by higher incentive compensation expenses, consistent with the improved profitability.
  • Operating income in the June 2021 quarter was $11.9 million compared to the prior year third quarter loss of $21.6 million, which included $23.1 million of COVID-19 related adjustments. Third quarter fiscal 2021 operating income increased 40 percent from the same quarter in fiscal 2019. The June 2021 quarter included a $1.2 million favorable adjustment to the contingent earnout liability from the DTG2Go acquisition. The June 2019 quarter included a $1.3 million gain related to the favorable settlement of a commercial litigation matter.
  • Net earnings for the June 2021 quarter were $8.2 million, or $1.14 per diluted share, compared to a net loss of $17.8 million, or $2.58 per share, in the June 2020 quarter, which included $17.7 million, or $2.57 per diluted share, of after-tax expenses associated with COVID-19. Net earnings per diluted share for the June 2021 quarter increased 60 percent compared to the same quarter in fiscal 2019. The June 2021 quarter included $0.9 million, or $0.13 per diluted share, of after-tax income related to the reduction of fair value of the contingent earnout liability. The third quarter fiscal 2019 results included an after-tax gain of $0.7 million, or $0.10 per diluted share, related to the settlement of a commercial litigation matter.

Total inventory as of June 2021 was $152.3 million, down $5.7 million compared to $158.0 million from a year ago. Total inventory increased $3.8 million from March 2021 resulting from an increase in raw materials and in-process inventory, partially offset by a $2.9 million decrease in finished goods. Total net debt, including capital lease financing and cash on hand, was $132.3 million as of June 2021, representing a $4.8 million increase from net debt levels a year ago, and a $2.9 million decrease from net debt levels in March 2021. The decline in total net debt since the March quarter was due to improved profitability, partially offset an in-process inventory build and $6.6 million paid for the Autoscale.ai technology announced on June 8, 2021. Cash on hand and availability under the company’s U.S. revolving credit facility totaled $43.4 million as of June 2021, a $2.3 million decrease from a year ago.

Posted August 5, 2021

Source: Delta Apparel Inc.

Academy Sports + Outdoors Announces Appointment Of Sharen J. Turney To Board Of Directors

KATY, Texas — August 5, 2021 — Academy Sports and Outdoors Inc. announced today, effective immediately, the appointment of Sharen J. Turney to its board of firectors, its Compensation Committee and its Nominating and Governance Committee. Academy also announced today that Nathaniel “Nate” Taylor will step down as a member of the Governance Committee, effective concurrently with Turney’s appointment to that committee. With these changes, Academy’s Board now comprises nine directors and the Governance Committee is now comprised entirely of independent members.

“We are very excited to add Sharen’s deep retail and e-commerce background to our Board,” said Ken C. Hicks, Academy chairman, president and CEO. “Her global experience was developed over three decades of senior executive roles at some of the most recognized brands in the world. As a native Oklahoman, she understands our customer. She also has unparalleled experience acquiring and retaining customers during a tremendous growth phase similar to the one Academy is entering.  We look forward to leveraging her expertise along with her strong prior and current board experience.”

Turney, previously served as the CEO of Russia-based denim brand Gloria Jeans. Before joining Gloria Jeans, Turney served as president and CEO of Victoria’s Secret, a division of L Brands Inc., and as president and CEO of Victoria’s Secret Direct, the brand’s catalogue and e-commerce operation. Prior to that, Turney spent several years in various executive roles, including president and CEO of Neiman Marcus Direct, the direct marketing division of Neiman Marcus Group. Turney has also served as an advisor to several retailers and technology companies.

Currently, Turney serves on the board of directors of Alliance Data Systems Corp., including on its Nominating and Governance Committee and as Chair of its Compensation Committee.  Previously, she served on the board of directors of Sweden-based designer sock and underwear brand Happy Socks AB, the board of directors of M/I Homes Inc., and the board of directors of FULLBEAUTY Brands. Additionally, Turney serves as a director of the University of Oklahoma Foundation, including on its Investment Committee, and served as a director of Nationwide Children’s Hospital Inc., including as chairman of the board of its Research Institute. Turney received her bachelor’s degree from the University of Oklahoma and serves on the Baker Retailing Center Industry Advisory Board at Wharton School at the University of Pennsylvania.

The board selected Turney because of her prior board and executive leadership roles, extensive digital/e-commerce, marketing, operations, financial skills, and her experience as both a retailer and vendor serving the retail community.

Posted August 5, 2021

Source: Academy Sports + Outdoors

Carhartt Promotes Danilo Amoretty To Senior Vice President Of Global Product Supply And Operations

Danilo Amoretty

DEARBORN, Mich. — August 5, 2021 — Carhartt is pleased to announce the promotion of Danilo Amoretty to the newly created role of senior vice president of Global Product Supply and Operations. In this position, he will join Carhartt’s senior leadership team where he will help develop a production, operations and procurement vision for its supply chain to ensure multi-year growth, product line expansion plans and profitability. Amoretty will report to Linda Hubbard, president and COO for Carhartt.

Most recently, he served the company as vice president of Global Product Supply. In this role, Amoretty delivered a new supply-driven model to position America’s premium workwear brand for growth. This model has proven to be an excellent way for the company to support market demand and grow its supply chain while continuing to meet its quality commitment to customers and associates.

Amoretty joined Carhartt in March 2018 as vice president of Supply Chain Operations where he successfully collaborated with departments across the organization to align the global supply chain and corporate strategies to realize sustainable operational and cost efficiencies.

“Over the last few years, Danilo has proven to be a strategic and innovative leader, delivering on his commitments, and building strong relationships with new and existing suppliers,” Hubbard said. “We look forward to his continued business insights and expertise, as well as leveraging his passion for building a better world for all hardworking people.”

Prior to joining Carhartt, Amoretty served as director of Sourcing Americas at VF Corp., where he led the ideation and implementation of the sourcing strategy in the Western Hemisphere and drove the product innovation process. From 2001 to 2012, he was vice president of Sourcing for Fruit of the Loom Inc.

Amoretty earned his Bachelor of Arts degree in International Business and Management from Harding University and his Master of Business Administration from Western Kentucky University. He is fluent in English, Spanish and Portuguese, as well as certified as a Six Sigma Black Belt.

Posted August 5, 2021

Source: Carhartt Inc.

Indorama Ventures Reports Record Core EBITDA In Second Quarter, And Forecasts Continued Growth As Global Markets Recover From Pandemic

BANGKOK, Thailand — August 5, 2021 — Indorama Ventures Public Co. Ltd. (IVL), a global chemical producer, announced its second quarter 2021 financial results, reporting a record Core EBITDA of $477 million as major economies recovered from the COVID-19 pandemic and drove demand for products across IVL’s businesses. IVL is forecasting similar strong growth in the second half of 2021 and in 2022 as global vaccination programs spur positive sentiment.

2Q 2021 Performance Summary

  • Consolidated Revenue of $3,559 million, an increase of 10 percent QoQ and up 52 percent YoY.
  • EBITDA of $552 million and Core EBITDA of $477 million.
  • Net profit of 8,340 million Thai bahts, a growth of 39 percent QoQ, and compared to 154 million Thai bahts a year earlier.
  • Core ROCE of 12.9 percent, up 443 basis points (bps)  QoQ and up 715 bps YoY.
  • Project Olympus, the company’s cost saving and business. transformation project, yielded $116 million in efficiency gains in 1H21, on track to our 2021 target of $287 million.
  • Acquisition of CarbonLite’s recycled PET asset in USA, making IVL the largest global producer of rPET resin.

Aloke Lohia, group CEO of Indorama Ventures, said: “During the pandemic we doubled down on our transformation and development programs as we build towards a future-ready organization, and we are now starting to see the results of these initiatives as global vaccination programs spur a recovery. We will continue to benefit from the economic tailwinds as all three of our business segments — Combined PET, Fibers, and Integrated Oxides & Derivatives (IOD) — experience strong demand and margins. At the core of our platform, is an ongoing focus on innovation-led products and a commitment to achieving our ambitious ESG and sustainability targets. All of our investments in these important areas will continue to drive IVL’s growth into the second half of 2021 and beyond as a world class sustainable chemical company. We appreciate the efforts of our colleagues across the globe who are working tirelessly and compassionately to ensure the safety and health of our IVL community. We are proud of the way that our teams have adapted to the pandemic.”

Overview

IVL delivered standout results in 2Q21 and a record Core EBITDA of $477 million, bolstered by our global franchise, scale and leadership across our three business segments. Our record quarterly results include solid performance across regions. Americas and EMEA yielded a record, performing 59-percent higher Core EBITDA in 1H21 as compared to 1H20, while Asia grew by 15 percent. In 2020, IVL’s businesses passed the test of resiliency, and this first half of 2021 has highlighted the value creation coming from our platform.

Demand for our products remained robust across all segments and all regions. We achieved higher margins along our portfolio, leveraging on our integrated operating model and regional supply chain advantage offsetting headwinds in the ecosystem such as shortages of key raw materials and logistics constraints. In an environment of major disruption, IVL’s management has demonstrated agility in responsibly navigating the ecosystem and continuing to provide value to customers.

Strong growth forecast for 2H 2021 and FY 2022

The remainder of 2021 is expected to parallel the first half on the back of continued strong demand in our products from opening of travel with widespread vaccination and immunity.

  • We anticipate significantly improved IOD volumes with Lake Charles (IVOL) in re-start mode post a shutdown in July 2020 due to lighting strikes, margins enhancement due to strong shale gas economics. Our oxyfuel business has returned to profitability with support coming from increased mobility due to the strong crude oil environment.
  • Integrated PET margins will likely adjust to an increase in supplies as container movement eases towards year end.
  • The semiconductor shortage is tempering some of our customer demand in the Fibers segment and the steep cost increase of polypropylene is leading to lag in pass through mechanisms for our hygiene vertical.

Overall, we see a strong 2H21 and 2022, anticipated to surpass our guidance given in the Capital Market Day presentation in January 2021.

ESG & Carbon Neutrality

In the second quarter, IVL announced three major developments in our sustainability journey. First, IVL completed the acquisition of CarbonLite’s recycled PET asset in Texas. This site will recycle more than 3 billion PET bottles per year, bringing IVL closer to our 2025 global target of recycling 50 billion bottles annually.

Second, IVL launched its Carbon Neutral PET* pellet made with renewable energy, locally sourced materials and low-impact water transport. This was launched on Deja, our sustainable brand platform. Finally, IVL announced a greenfield recycling facility in Karawang, Indonesia to process almost 2 billion PET bottles annually in support of the Government of Indonesia’s National Plan of Action on Marine Plastic Debris.

*This was mentioned in the 1Q21 MD&A as a post quarter event. Carbon Neutral PET was launched in April 2021.

Posted August 5, 2021

Source: Indorama Ventures Public Co. Ltd. (IVL)

Borealis Appoints Thomas Reutter As Vice President Product Asset Management And Supply Chain

Thomas Reutter

VIENNA, Austria — August 5, 2021 — Borealis announces the appointment of Thomas Reutter as vice president Product Asset Management and Supply Chain, effective 1 August 2021.

Reutter joins Borealis from Dow and brings extensive product asset management and supply chain experience. Since joining Dow in 2008, he has held various positions with increasing responsibilities in product management, supply chain management and sales in the Netherlands, Mexico and Switzerland. Most recently he has served as senior product director for Linear Low Density Polyethylene, based in Switzerland.

Reutter holds a Master’s in Business Administration degree from the Martin-Luther University Halle, Germany, with a specialization in Controlling and Supply Chain. Reutter is a German national and currently lives with his partner and two children in Switzerland.

“We warmly welcome Thomas Reutter to the Borealis Polyolefin Business,” commented Borealis Executive Vice President Lucrèce Foufopoulos. “Thomas is a business savvy, experienced product asset leader, with exposure to different cultures & ways of working throughout his career. We look forward to bringing his skills and strong performance orientation to the Polyolefins business and Borealis group.”

Posted August 5, 2021

Source: Borealis

HUGO BOSS Presents New Growth Strategy “CLAIM 5” Aimed At Doubling Sales To 4 Billion Euros By 2025

METZINGEN, Germany — August 4, 2021 — Today, HUGO BOSS introduced its new 2025 growth strategy “CLAIM 5” and provides its mid-term financial ambition. Over the next five years, the company is fully committed to strongly accelerate top-line growth, claim its position in the consumers’ minds, and win market share for its strong brands BOSS and HUGO.

To deliver on its vision and ambition of becoming the premium tech-driven fashion platform worldwide, and one of the top-100 global brands, Hugo Boss introduces its CLAIM 5 strategy, which puts the consumer at the core of its business activities more than ever before. CLAIM 5 is based on five strong pillars: Boost Brands, Product is King, Lead in Digital, Rebalance Omnichannel, and Organize for Growth. It also includes a bold commitment to sustainability, together with a strong executional road map and a clear plan on empowering people and teams.

CLAIM 1 – Boost Brands

To strongly elevate brand relevance, the company is refreshing BOSS and HUGO — from logos over marketing, to brand new designs in retail and digital. As such, customers will experience both brands in a completely new look and feel. To become the leading power brands, it is the ambition to achieve around 2.6 billion euros in BOSS Menswear sales and to double BOSS Womenswear sales to around 400 million euros by 2025. This will be realized by enhancing the overall perception of BOSS as a lifestyle brand, increasing brand relevance, and strongly focusing on digital. The company also aims at driving around 800 million euros of sales for HUGO by building brand power, increasing brand awareness — with a dedicated marketing push — and driving geographical expansion. The company’s license business — covering a variety of products including fragrances, watches, and eyewear, among others — is set to contribute up to 200 million euros of revenues by 2025.

Two clearly distinguished marketing strategies — with a strong focus on digital as well as exceptional collaborations — are set to create excitement among consumers and unleash the full potential of BOSS and HUGO. Overall, incremental marketing spend will be more than 100 million euros between now and 2025.

CLAIM 2 – Product is King

With product at the center of its new strategy, Hugo Boss will create products to be worn 24/7 across all different wearing occasions. While casualization and comfort are key, Hugo Boss will strongly invest in its price-value proposition to ensure premium quality as well as high levels of innovation and sustainability. In doing so, the BOSS brand will foster its unique positioning in the premium/affordable luxury segment. To become the first touchpoint for younger consumers, the HUGO strategy builds on a broad range of commercial and contemporary pieces reflecting the authentic and unconventional HUGO style.

CLAIM 3 – Lead in Digital

Digital is key in ensuring a personalized omnichannel consumer journey. It is also enabling Hugo Boss to deliver on its vision to become the premium tech-driven fashion platform worldwide. The 2025 strategy therefore includes a strong commitment to further digitalizing the company’s business activities along the entire value chain, from trend detection and digital product development to AI-enabled pricing capabilities and the global rollout of digital showrooms. This also includes establishing a digital campus to further expand the company’s digital capabilities and to improve the consumers’ experience by leveraging data. The HUGO BOSS Digital Campus, based in Metzingen, Germany and Porto, Portugal, will strengthen the company’s online activities as well as analytical, technical, and executional capabilities. It extends Hugo Boss’ digital know-how with immediate effect by combining the company’s own expertise with that of experts on data execution. Overall, Hugo Boss will step up its investments into digital by more than 150 million euros by 2025.

CLAIM 4 – Rebalance Omnichannel

To translate brand power into all consumer touchpoints, Hugo Boss will rebalance its distribution footprint and strongly accelerate its omnichannel activities in the years to come. In this context, the company aims at ensuring a seamless brand experience across all consumer touchpoints. Boosting its digital revenues to more than 1 billion euros by 2025 will be a key element in this regard, and enable Hugo Boss to grow its digital penetration to a level between 25 percent and 30 percent of Group sales. The company’s digital ambition includes a strong commitment to all digital touchpoints – from its own website hugoboss.com to its online partner businesses, including digital pure players, leading marketplaces as well as bricks and clicks.

Hugo Boss will also unleash the full potential of retail as it aims at growing brick-and-mortar retail revenues to around 2 billion euros by 2025. Growth will be driven by an increase in store productivity of around 3-percent per year, as well as the further optimization and refreshing of the company’s global store network. In this context, around 80 percent of own stores are set to be refurbished during the next three years already, with overall investments into brick-and-mortar retail targeted to total around 500 million euros for the period until 2025. Hugo Boss also intends to increase brick-and-mortar wholesale revenues to a level of around 1 billion euros by 2025. The company is fully committed to reclaiming its position in this important channel by strengthening existing partnerships and regaining market share in key product categories.

CLAIM 5 – Organize for Growth

Hugo Boss will drive growth across all geographies while further balancing its global footprint. In Asia/Pacific, revenues are set to grow at a low-teens compound annual growth rate (CAGR 2019-2025). As a consequence, the region’s revenue share will grow to more than 20 percent within the next five years. Mainland China will continue to be of particular importance, with the company putting a strong focus on the Chinese consumer also in the years to come. HUGO BOSS is equally committed to fostering its leading position in premium apparel in Europe, where sales are forecast to grow at a low- to mid-single-digit rate per annum (CAGR 2019-2025). Key markets such as Germany, the United Kingdom, and France are all set to strongly contribute to growth by unleashing their full potential in retail, reclaiming wholesale with strong partners, and driving digital growth across all consumer touchpoints. In the Americas, revenues are projected to grow at a mid-single-digit CAGR between 2019 and 2025, as the company will strongly push the 24/7 brand image by fully leveraging the casualization trend in the important U.S. market.

‘Organize for Growth’ also means leveraging the company’s existing operations infrastructure as the future platform for speed and growth. Hugo Boss will therefore foster modular and digital product creation, continue to shorten lead times, increase flexibility in production and logistics, as well as push digitalization to further increase the overall efficiency and flexibility of its supply chain. By 2025, the Company aims at creating more than 90 percent of its products digitally while it also works towards reducing end-to-end lead times by around 30 percent.

At the same time, Hugo Boss will intensify its sustainability efforts to deliver both meaningful and measurable impact as well as emotional engagement with the consumer. The company’s ambitious sustainability targets include the aim for climate neutrality within its own area of responsibility by 2030 and throughout the entire value chain by 2045. In addition, Hugo Boss will put particular emphasis on establishing an end-to-end circular business model. In this context, the company aims to enable eight out of ten products to become circular by 2030.

“Our ‘CLAIM 5’ strategy is a clear vision for the company with the consumer at its core — helping to enhance the consumer journey, improve our product offering, increase our relevance, and drive growth across all geographies,” says Daniel Grieder, CEO of HUGO BOSS AG. “Our aim is to grow Hugo Boss in a fast but sustainable way, and I am confident that we have the right team and strategy to successfully execute and lead our Company into the future.”

2025 Financial Ambition

With its new strategy, Hugo Boss aims to double sales to 4 billion euros by 2025, which implies a strong CAGR of 16 percent taking 2020 as the base year, and 6 percent as compared to the pre-pandemic level of 2019. To successfully deliver on its strategy, Hugo Boss will step-up investments into its products, brands, digital capabilities, as well as its global store network, all aimed at fueling industry-leading top-line growth. Consequently, over the next five years, value creation will shift from driving relative margin improvements to delivering strong top-line growth, absolute profitability improvements, as well as superior free cash flow generation.

Until 2025, gross margin is forecast at a level of between 60 percent and 62 percent, reflecting product investments to enhance the price-value proposition and fuel top-line growth. At the same time, Hugo Boss is confident of returning to a strong EBIT margin of around 12 percent by 2025, translating into an EBIT CAGR of 6 percent between 2019 and 2025. Investments into the business will be compensated for by leveraging operating overheads as well as strong efficiency gains to be realized by optimizing the company’s global store network. The latter relates to ongoing relocation and rightsizing initiatives, selective store openings and closings, as well as rent renegotiations. Driven by the significant top- and bottom-line growth, Hugo Boss will generate substantial cumulative free cash flow between now and 2025. Improvements in trade net working capital and the smart and efficient use of capital expenditure will provide further support to free cash flow development. The majority of cumulative free cash flow — around EUR 2 billion until 2025 — will either be reinvested into the company or distributed to shareholders through regular dividend payouts. In this context, the company’s payout ratio until 2025 will be in a range of between 30 percent and 50 percent of net income attributable to shareholders.

Posted August 4, 2021

Source: HUGO BOSS

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