The CEO of German manufacturer of fashionable clothes Hugo Boss AG Claus-Dietrich Lars has resigned, Bloomberg reports citing a company statement. 52-year-old Lars will leave the post on February 29, after which he “without delay” will be substituted, said in a statement.
Two days ago shares of Hugo Boss fell by 20% to €56, in Frankfurt is the biggest drop since October 2008. Shortly before that, the company has published a document which stated that its profit in 2016 will fall by at least 10% due to lower than expected sales in the United States and China. This is the second reduction of forecast company earnings for the six months.
Lars was appointed CEO of Hugo Boss eight years ago. Quick change of the General Director of “contrasts” with the warm reception that Lars got in the appointment, according to Bloomberg. It was assumed that his experience with brands such as Louis Vuitton and Christian Dior, will contribute to the development in Hugo Boss clothing for women. In 2013 Lars hired designer Jason Wu to work in this direction, however, despite this, the weakening demand for expensive clothes worldwide has led to falling sales and profits.
Hugo Boss is planning to submit a full report on the annual results on 10 March.