German fashion label Hugo Boss and its 52-year old CEO Claus-Dietrich Lahrs will go their separate ways after 8 years. The company had sent out a profit alert only this past Tuesday.
Share drops 25 %
Lahrs’ departure was announced this afternoon, merely 2 days after the company had to send out a profit alert because of the continuous "difficulties in the United States and China". Mid-January, Hugo Boss estimated its 2015 operational profit would grow slightly, but that was a wrong assumption apparently. The full results will be revealed on 10 March.
When Hugo Boss stated it would lower its profit forecast, its share got hammered as investors sent it down 25 %. Following Lahrs' resignation, the share recovered 4 %.
After stints with luxury houses Louis Vuitton and Christian Dior, Lahrs was appointed Hugo Boss CEO 8 years ago. He helped launch the brand's own stores, similar to what other luxury brands were doing, and the men's brand also ventured into the women's fashion world under his guidance. Lahrs initiated that move when he hired designer Jason Wu in 2013.