Old awards can eventually blow up in companies' and people's faces if what they were once honoured for goes completely wrong. In February last year, Hugo Boss was cited as forecasting champion and top performer in a study by the shareholders' association DSW, strategy consultancy Advyce & Perlitz (now named Advyce & Company), and the University of Witten/Herdecke.

They lauded the precision and foresight of the board of directors of the MDax company, where Daniel Grieder has been at the helm as CEO since June 2021. Investors could not only rely the future direction being set out at the beginning of each year, but could rely on the announced targets actually being achieved.

But since the summer of 2023, things haven't been going so smoothly for the fashion group and its leader. Hugo Boss shares climbed to more than 75 euros in July last year– the highest level in a long time. One year later, they are hovering at around 40 euros. Hardly a „top performer“ anymore.

There are now also question marks over whether announced goals will be achieved. In mid-July, Hugo Boss lowered its full year forecasts, after slow business in the first half. The weak consumer climate had put a damper on the company's calculations. At the same time, CEO Grieder had previously forecast sales growth of between 3% and 6% to around 4.3 billion to 4.45 billion euros. Since then, there has only been an increase in group revenues from 1% to 4% to a range of round 4.2 billion to 4.35 billion euros. At the same time, the estimate of the operating result (EBIT) was reduced: It should now be in a range of around 350 million to 430 million euros, corresponding to a change compared to the previous year of minus 15% to plus 5%. The outlook had previously included an EBIT increase of 5% to 15% to around 430 million to 475 million euros.

The sales target of 5 billion euros and an EBIT margin of at least 12%, which had already been vaguely forecast for 2025 in a positive environment, are unlikely to be achieved so quickly, given the great uncertainty among consumers.

With this profit warning, not only has Hugo Boss's reputation on the capital markets been hit, but CEO Grieder's own reputation has also suffered. At the beginning of March, the company announced that his contract, and that of CFO and Chief Operating Officer (COO) Yves Müller, who has been a member of the Executive Board since December 2017, had been extended. Müller's contract now runs until the end of December 2027, and Grieder's one year longer. „The current management team has taken Hugo Boss to a new level and is therefore largely responsible for the company's enormous progress in recent years,“ said supervisory board chairman Hermann Waldemer at the time.

Grieder's image as a successful doer is now in jeopardy. He will be aware of this. When the contract was extended in March, when the downward trend in the consumer goods industry had already been established, chief controller Waldemer had very kind words for the manager, who was born in Washington in 1961, and lives with his family in Zurich and the USA.

„Under the leadership of Daniel Grieder, (the board) has succeeded in positioning Hugo Boss as one of the top players in the global premium clothing market in a highly competitive environment,“ said Waldemer.

To ensure that it stays that way, Grieder and Müller are now tightening the cost screws. Of course, the CEO is less concerned with financing and profitability issues than the CFO. Grieder is a fashion manager, not a numbers man. The longer the lull in consumer spending lasts, and Hugo Boss's business suffers, the less he is likely to enjoy his job.

While he was studying at the Zurich School of Economics, Grieder founded Max Trade Service AG (later renamed Madison Clothing Ltd.) in 1985, which, in addition to the production and sale of leather clothing in Switzerland, also took over the distribution of internationally known brands, including Tommy Hilfiger.

From 1997, the year the US brand Tommy Hilfiger was introduced on the European market, Grieder was largely responsible for its success in Europe. In 2004, he was appointed Vice President of Commercial Operations at Tommy Hilfiger Europe and, two years later, COO and President of Tommy Hilfiger Europe. In 2008, he took over the position of CEO of Tommy Hilfiger Europe. After integrating the Tommy Hilfiger brand into Phillips-Van Heusen (PVH) Corporation in 2010, Grieder became CEO and President of Tommy Hilfiger Global and PVH Europe in 2014.

One of the greatest successes under Grieder's leadership is that the brand, which previously only stood for men's fashion, has long been associated with highly acclaimed women's collections. Here, a path that had already been embarked on was consistently and successfully implemented. Even more positive is that the brand portfolio is now widely diversified: It ranges from classic ready-to-wear to evening wear to casual leisure fashion. Shoes and leather accessories, as well as licensed fragrances, glasses, watches and children's fashion, are also sold.