Medium-term increase in profitability
The Group’s operating result (EBIT) is expected to increase faster than sales in the coming years. As a result, the Group has set itself the target of improving the EBIT margin significantly in the medium term. An improved gross profit margin and a Group-wide efficiency program with a strong focus on a more efficient use of operational expenses should contribute to this development.
In order to improve the gross profit margin, the aim is to reduce the complexity of the BOSS and HUGO collections, to improve the markdown management, and to reduce the sales share of the outlet business. In addition, further increasing the sales share of the Group’s own retail business is expected to contribute to a higher gross profit margin. In this distribution channel, the Group achieves a higher gross profit margin than in the wholesale business. The efficiency program aims at improving the profitability of the Group’s own retail business, using marketing budgets more effectively, and further optimizing the organizational structure of the Group. Additional investments in digitizing the business model will partly offset the savings achieved.