German clothing brand Hugo Boss is finally starting to reap the benefits from its restructuring plan. Sales grew once more in the second quarter, thanks to China, the United State and its own boutiques.
636 million euro
Hugo Boss’ second quarter sales reached 636 million euro, which is 15 million euro lower than in the first quarter, but it is still a 2 % turnover increase compared to last year’s second quarter. “ Our strategic realignment is beginning to take effect. Business in the second quarter was encouraging. We made considerable headway in the United States and in online business in particular”, CEO Mark Langer said. Its two-brand strategy, focused on BOSS and HUGO (with BOSS Orange and BOSS Green now part of BOSS), seems to pay off.
With 372 million euro (- 2 %), Europe is still the largest region, followed by America (+ 5 % to 148 million euro). North America was the main reason for the region’s turnover increase, because Latin America suffered a drop. The strongest growth was in the APAC region (Asia Pacific), with a 11 % turnover growth to 98 million euro. Chinese sales in particular shot up, 14 % to be exact.
Hugo Boss increasingly depends on its own retail channel. It now owns 438 stores, spanning over 155,000 square meters of store space. These boutiques generate a 436 million euro (+ 5 %) turnover, but its wholesale division slumped 6 % to 182 million euro. Another 18 million euro (+ 27 %) comes from license deals.
