In order to increase production in the long term, Hugo Boss recently announced plans to expand its already largest production facility in Turkey and to move manufacturing closer to sales locations. Boss also plans to relocate part of its production to “city factories” in Western countries. In addition, final production of jeans and denim is scheduled to begin this quarter in a trial run at a small factory in Los Angeles. As the production facilities are mainly located in Europe, the company is also hardly threatened by supply bottlenecks.
Fundamentally, sales and also profits have continued to rise. While estimates of quarterly results were often too positive in previous years, they were mostly exceeded last year. Sales in November, for example, were €755 million and earnings €0.76/share. With the steady increases in these figures, Hugo Boss has shown strength especially also during the pandemic.