Hugo Boss has had the second strongest quarter in its long history. The new growth strategy is catching on, and the fashion group is therefore raising its forecasts for the full financial year.
Both physical and online
Hugo Boss saw its sales rise go up 34 % in the second quarter to 878 million euros: the second strongest quarterly growth in the brand’s history. Growth was 41 % in Europe and even 45 % in America. In China, however, sales were under pressure due to shop closures because of the coronavirus.
Sales in physical shops increased by 38% and sales to wholesale customers rose by 51%. But online sales too, despite a very difficult basis for comparison, rose by double digits: +11%. The profit figures are not lagging behind: the operating profit amounted to 100 million euros, compared to 42 million last year. The ebit is even 25% higher than in 2019.
Growth strategy works
According to CEO Daniel Grieder, the strong figures are the result of the new ‘Claim 5’ growth strategy. The German fashion house has refreshed the brand, upgraded the shops and rejuvenated the collections. The group is also focusing on digital technology and shifting production more towards Europe to avoid supply problems.
Based on these preliminary figures, Hugo Boss is raising expectations for the full financial year: sales will increase by 20 to 25 % to reach 3.3 to 3.5 billion euros. Earlier, the group had forecast a growth of 10 to 15 %. The operating result will increase by 25 to 35 %. The company will publish its detailed quarterly report on 3 August.