A couple of days ago, Hugo Boss announced that 2016 profits would be lower than previously expected. Now, the brand has announced the resignation of Claus-Dietrich Lahrs as CEO.
According to an article on Fashionista, Hugo Boss announced on Thursday that Claus-Dietrich Lahrs will be resigning as CEO of the brand which may be due to low profits in both the U.S. and China. Members of the brand’s board will be handling some of Lahrs’ previous responsibilities with Bernd Hake, Senior Vice President of Europe, Middle-East, Africa, and India handling sales and retail, beginning March 1.
The company is now searching “without delay” for someone to replace the CEO that has been with the company for 8 years which is quite different from what we’ve seen from other brands. Both Dior and Lanvin still haven’t found anyone to replace their former creative directors, though, those positions are very different from that of a chief executive officer and may be much more difficult to do.
Regardless, you’d think the company would take more time to find someone to replace Larhs. It’s going to take someone who is very good at what they do to get the company’s finances where they want them to be.
Hugo Boss recently lowered prices on its clothing after the company’s sales decreased in the U.S. and China. Then the company’s stocks were down by 19.8 percent according to an article on Reuters. It’s going to take a lot of skill to bring sales back up and keep investors interested in the company. Which is also why I think Hugo Boss needs to look for more than a new CEO.
While it is important for Hugo Boss to find a replacement for Claus-Dietrich Lahrs, the brand should be looking for someone to replace Ingo Wilts, creative director of Hugo Boss’ menswear label. The brand’s womenswear has had much success in recent years but the brand’s menswear doesn’t seem to have had that same success. Hugo Boss needs to give its menswear that same success and take its clothing out of department stores and put them in luxury retail stores.
Hugo Boss sells a lot of its clothing in stores like Macy’s and JcPenny; both stores whose sales decline last holiday season. So I wouldn’t be surprised if Hugo Boss’ sales decreased along with those of department stores during the holidays last year.
So, what do you think? Should Hugo Boss wait to find a new CEO? Let me know in the comments below. Also, don’t forget to subscribe to get new posts sent directly to your inbox and follow me on Facebook, Instagram, and Snapchat.
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