Hugo Boss performs very well in second quarter | RetailDetail

Hugo Boss performs very well in second quarter

Hugo Boss performs very well in second quarter

German Hugo Boss managed a 16 % turnover growth in the second quarter, meaning the company has shifted up a gear over the past few months, with particularly its own retail branch, both physically and online, performing well.

Europe is fastest grower

In the second quarter, Hugo Boss managed a 647 million euro turnover, which is 16 % better than in the same time frame last year. It is even a lot better than its first quarter performance, when growth "merely" reached 9 %. Excluding favourable exchange rate fluctuations, growth reached 7 % (compared to 3 % in the first quarter). Both its men's and women's collections moved forward, respectively + 7 and + 5 % in local currency.

 

The growth spurt is mostly because of its European activities (up 7 % before exchange rate fluctuations, to 363.3 million euro), with the UK in particular doing well with double-digit growth. Hugo Boss' Australian and Japanese turnover also grew more than 10 %, with only the United States lagging behind, up merely 1 %.

 

HugoBoss.com's relaunch is big hit

Considering the first 6 months, its own retail branch managed a 9 % turnover growth and pushed the German fashion concern forward, like it has done in the past. On a like-for-like basis, the growth reached 5 %. Hugo Boss opened 47 stores since the start of the year, up to 1,088 in total. The remainder of the company's growth comes from its online performance, thanks to the relaunch of its own web shop: Hugo Boss' sales went up 23 % in the first 6 months compared to the same period last year.

 

Hugo Boss' wholesale branch dropped 2 % in local currency, although it has to be said that the company acquired several stores from its customers over the past few months.

 

Its gross profit margin remained stable at 66 %, despite the increased market share of its own retail activities. That positive effect was cancelled out by larger discounts and stock write-offs. The group has now confirmed its full-year growth forecast and is focused on a "mid-single-digit rate", which means around 5 %.

Questions or comments? Please feel free to contact the editors


Hoegaarden moves part of production to Vietnam and China

18/05/2018

Hoegaarden experiences strong growth in Asia, but is losing ground in Europe. That is why AB InBev will move part of the production to China and Vietnam: the brewery in Hoegaarden will lower cut its production days by 2 a week.

Holland & Barrett wants vegan stores

17/05/2018

British health chain Holland & Barrett (previously known in the Benelux as Essenza) plans to open completely vegan stores, a trend the chain needs to follow according to CEO Peter Aldis.

Nestlé on a diet: cuts back sugar, fat and salt levels

17/05/2018

Nestlé wants to lower its sugar, salt and fat levels to play into the global demand for healthier food.

Analysis: six reasons major brands are under pressure

17/05/2018

Global brands are increasingly struggling to ward off smaller, local companies. Some even believe the brands’ golden age has passed. That may be presumptuous, but there are some noticeable trends.

Coca-Cola is strongest global brand, but local brands are on the rise

17/05/2018

Coca-Cola, Colgate and Maggi are the most popular FMCG brands worldwide, according to a Kantar Worldpanel report. Local brands are stealing market share however.

Amazon Prime members get additional discount at Whole Foods

17/05/2018

Amazon Prime members will get an additional discount on hundreds of Whole Foods products, the chain it acquired in June 2017. Specialists claim there is a clear strategy behind these discounts.