German fashion brand Hugo Boss’ currency-adjusted group sales in the second quarter (Q2) of 2022 grew by 34 per cent to €878 million, up 29 per cent vs. Q2 2019. Its operating profit (EBIT) in Q2 amounted to €100 million, well above the prior-year level. The company now expects sales to grow to a record level of €3.3-3.5 billion (20-25 per cent) and EBIT to increase to €285-310 million (25-35 per cent) in fiscal 2022 (FY22).
Hugo Boss accelerated its financial and operational performance in the second quarter. Momentum was fuelled by the ongoing successful execution of the company’s ‘Claim 5’ growth strategy as well as the bold branding refresh of Boss and Hugo initiated at the beginning of 2022, the company said in a press release.
In Europe, currency-adjusted sales were up 41 per cent year-over-year in Q2, translating into robust three-year-stack growth of 36 per cent, with all major markets contributing. In the Americas, Hugo Boss drove currency-adjusted sales growth of 45 per cent year-over-year, with three-year-stack growth amounting to 38 per cent.
German fashion brand Hugo Boss’ currency-adjusted group sales in Q2 2022 grew by 34 per cent to €878 million, up 29 per cent vs. Q2 2019. Its EBIT in Q2 amounted to €100 million. The company now expects sales to grow to a record level of €3.3-3.5 billion (20-25 per cent) and EBIT to increase to €285-310 million (25-35 per cent) in fiscal 2022 (FY22).
In Asia/Pacific, currency-adjusted revenues remained on par with the prior-year level. Double-digit growth in Southeast Asia & Pacific compensated for a sales decline in China, largely reflecting COVID-19-related temporary store closures throughout much of the second quarter. As compared to pre-pandemic levels, sales in Asia-Pacific were down 4 per cent.
From a channel perspective, the Group’s digital business successfully continued its double-digit growth trajectory in Q2. Despite being up against a particularly strong comparison base from the prior-year period, currency-adjusted sales were up 11 per cent. Compared to 2019, total digital sales more than doubled, up 128 per cent currency adjusted.
Also, in brick-and-mortar retail, Hugo Boss recorded double-digit sales improvements, with revenues up 38 per cent compared to the prior year. Consequently, three-year-stack growth amounted to 19 per cent currency-adjusted. Fuelled by wholesale partners’ strong demand for the latest Boss and Hugo collections fully incorporating the branding refresh, currency-adjusted sales in brick-and-mortar wholesale grew 51 per cent. As compared to pre-pandemic levels, this translates into an increase of 18 per cent.
Considering the strong top- and bottom-line performance in the second quarter but also taking into account the ongoing macroeconomic uncertainties, Hugo Boss has raised its outlook for the current fiscal. The company now forecasts Group sales in fiscal year 2022 to increase by 20-25 per cent compared to the prior guidance of 10-15 per cent. EBIT in 2022 is now expected to increase between 25-35 per cent to a level of between €285-310 million compared to the prior guidance of between 10-25 per cent to €250-285 million.
Fibre2Fashion News Desk (KD)