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Hugo Boss forecasts further business recovery in H2

By Prachi Singh

4 Aug 2021


Image: Boss, Facebook

Currency-adjusted group sales at Hugo Boss Ag increased 133 percent compared to the prior-year period. In group currency, sales rose 129 percent to 629 million euros. The company said, compared to the second quarter of 2019, the decline in currency-adjusted group sales was limited to 4 percent, with all regions, channels, and brands contributing to this development.

“Our strong performance in the second quarter impressively demonstrates the great potential of our two brands Boss and Hugo,” said Daniel Grieder, chief executive officer of Hugo Boss, adding, “We are well prepared to further drive our business recovery also in the second half of the year.”

Hugo Boss posts business recovery across regions

The company added that while sales more than doubled by 130 percent currency adjusted to 385 million euros in Europe and they more than quintupled by 416 percent to 123 million euros in the Americas.

Currency adjusted revenues in Asia/Pacific were up by 51 percent as compared to the prior-year period, totaling 104 million euros. On a two-year-stack basis, the company further said, currency-adjusted sales in Europe remained 4 percent below 2019 levels, as the lifting of lockdowns and accompanying temporary store closures over the course of the quarter supported the business recovery in key markets.

Sales in the UK exceeded 2019 levels, with currency-adjusted revenues up 7 percent on a two-year stack. In the Americas, sales remained 5 percent below 2019 levels. In Asia/Pacific, currency adjusted sales were down 3 percent against the second quarter of 2019, with sales in mainland China up 28 percent against the prior-year period and 33 percent on a two-year-stack basis.

Hugo Boss performance through retail channels

From a channel perspective, Hugo Boss more than doubled sales by 124 percent to 422 million euros in company-owned retail against the prior-year quarter, while retail sales remained only 5 percent below 2019 levels.

The company’s own online business recorded currency-adjusted growth of 27 percent, implying triple-digit, 122 percent growth on a two-year stack. Sales in wholesale rose 170 percent currency-adjusted to 189 million euros and came in 2 percent below 2019 levels.

Momentum in casualwear strongly accelerated sales for both brands, Boss and Hugo, with currency-adjusted revenues up 139 percent and 102 percent, respectively. On a two-year-stack basis, sales for Boss declined 5 percent, while Hugo returned to growth with sales up 2 percent, both currency-adjusted.

Hugo Boss returns to profit in Q2, expects further growth in H2

Hugo Boss generated an operating profit (EBIT) of 42 million euros compared to minus 250 million euros in the second quarter of 2020. The group’s net income amounted to 25 million euros compared to minus 186 million euros in Q2 2020.

Despite persisting uncertainties regarding the further development of the pandemic, Hugo Boss is confident that the company’s overall business recovery will continue in the second half of 2021.

The company anticipates currency-adjusted group sales in fiscal year 2021 to increase by between 30 percent and 35 percent, with a contribution expected from all regions. EBIT is forecast to amount to between 125 million euros and 175 million euros in fiscal year 2021 compared to minus 236 million euros in 2020.