Hugo Boss’s CFO and chief operating officer, Yves Müller, will step down from both roles on October 1 for personal reasons. The move occurs as the company faces falling revenue and a strategic shift in its distribution approach. Ivica Maric, the current executive vice president of business operations, will take over both positions.
Hugo Boss announced Müller’s departure on Monday, stating he had requested the change. The company did not disclose further details. During his nearly nine-year tenure, Müller managed finance, IT, logistics, production, procurement, and purchasing. He also served as a managing board spokesperson from July 2020 until May 2021.
Maric, who has worked at Hugo Boss for 21 years, brings a similar operational and financial background. He previously led controlling and accounting before becoming senior vice president of controlling in 2012. His promotion to business operations in 2022 reflects Hugo Boss’s emphasis on digital transformation and operational efficiency, according to supervisory board chairman Michael Murray.
Under Müller’s direction, Hugo Boss launched its “Claim 5 Touchdown” strategy in December, designed to boost profitability and cash flow despite declining sales. The plan follows a phase of aggressive growth and now prioritizes a more targeted product and distribution approach through 2028. Marketing has shifted toward full-price sales and brand-centric campaigns.
Read Also: AI Leaders Struggle to Keep Oversight Systems Up to Speed
Sales declines have accelerated in recent periods. Adjusted revenue dropped 6% in the first quarter, with the Hugo brand’s sales falling 21% and wholesale revenue down 10%. By the second quarter, total sales were 9% lower at €905 million, while earnings before interest and taxes declined to €59 million from €81 million the previous year. Despite the challenges, Hugo Boss outperformed analyst expectations, achieving a gross margin of 64.9%, an increase of 200 basis points, and reducing inventory by 15% year-over-year.
The company anticipates currency-adjusted sales will decrease by a mid-to-high single-digit percentage for the full year, with operating profit projected between €300 million and €350 million. Hugo Boss aims to return to profitable growth in 2027, a goal Müller helped set. In December, he described the anticipated sales decline as temporary while laying out plans to improve efficiency and cash generation. “2026 will be a year of consolidation and realignment and an important step toward positioning Hugo Boss for long-term profitable growth,” he said.
Hugo Boss’s current struggles mirror broader challenges in the fashion industry. Founded in 1924, the brand has undergone significant transformations since its global expansion. Early operations included producing military uniforms during World War II, a period involving forced labor. Later, the company shifted to men’s suits before establishing its current Boss brand, now a key player in luxury fashion.
