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Hugo Boss Plummets as Turnaround Won’t Bear Fruit Until 2018

  • German clothier eliminates sub-brands, plans online expansion
  • Shares fall as much as 12% on lack of new cost savings goal
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Hugo Boss AG plunged after saying it won’t return to growth until 2018 as the ailing German fashion house embarks on a turnaround that includes eliminating brands, slowing down store expansion and selling more online.

Chief Executive Officer Mark Langer said 2017 will be a transition year as it reorganizes its struggling wholesale unit that sells to U.S. department stores. The stock fell as much as 12 percent in Frankfurt, in part from disappointment that the company didn’t unveil any new cost cuts besides the 65 million euros ($61 million) already announced for this year.