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Hugo Boss Q3 sales jump, raises outlook

By Prachi Singh

4 Nov 2021

Business

Image: Boss, Facebook

Hugo Boss group sales amounted to 755 million euros, representing a currency-adjusted increase of 40 percent against the prior-year period. In group currency, this corresponds to an increase of 42 percent.

On a two-year-stack basis, currency-adjusted sales were up 7 percent as compared to the third quarter of 2019. The company said in a statement that a global store opening rate of around 95 percent as well as a meaningful uplift in consumer sentiment – particularly across Europe and the Americas – contributed to strong sales growth in the three-month period.

“We look back on a very strong quarter with both sales and earnings exceeding pre-pandemic levels,” said Daniel Grieder, chief executive officer of Hugo Boss, adding, “We also made first great strides in successfully executing our Claim 5 strategy, particularly when it comes to boosting our brands among younger consumers. The spectacular launch of our second BOSS x Russell Athletic collection is a blueprint of how we will fully unlock our brands’ great potential together as a team in the future.”

Review of Hugo Boss’ third quarter results

The company added that strength in casualwear continued with sales up double-digits versus 2019. Both brands, Boss and Hugo posted double-digit growth in the third quarter with currency-adjusted sales up 38 percent and 51 percent against the prior-year period. Also compared to 2019 levels, sales increased 6 percent for Boss and 14 percent for Hugo, both currency-adjusted.

As compared to Q3 2020, currency adjusted sales in Europe increased 38 percent, translating into growth of 9 percent on a two-year-stack basis. In the Americas, revenues were up 94 percent currency-adjusted, exceeding 2019 levels by 14 percent.

In the Asia/Pacific region, the company further said, renewed Covid-19-related restrictions – including temporary store closures – weighed on consumer sentiment in various markets. As a result, revenues remained 1 percent below the prior-year level and 14 percent below that of 2019.

Hugo Boss posts 40 percent increase in Q3 retail sales

From a channel perspective, currency-adjusted revenues in the company’s own retail business were up 40 percent on the prior-year level, translating into growth of 13 percent on a two-year-stack basis.

The group’s own online business posted double-digit growth versus the prior-year period with currency adjusted revenues up 37 percent. Compared to 2019, sales on Hugoboss.com and on self-managed partner websites were up 127 percent, currency-adjusted.

In the wholesale channel, currency adjusted sales also grew 40 percent compared to the prior-year period. As a consequence, revenues in this channel remained only 1 percent below 2019 levels.

Hugo Boss generated an operating profit (EBIT) of 85 million euros, well above the prior-year level. Compared to pre-pandemic levels, EBIT was up 3 percent.

Hugo Boss raises outlook for the full year

In light of the strong top and bottom-line performance in the third quarter, Hugo Boss increased its outlook for the current fiscal year. The company now forecasts group sales in fiscal year 2021 to increase by around 40 percent currency-adjusted compared to prior guidance of currency adjusted increase of between 30 percent and 35 percent, with contributions expected from all regions.

EBIT is now forecast to come to a level of between 175 million euros and 200 million euros in fiscal year 2021 compared to prior guidance of between 125 million euros and 175 million euros.