Hugo Boss, the renowned German fashion house, is expecting its recovery to continue throughout 2021. In the second quarter, the company experienced a significant rebound in sales, with numbers nearly reaching pre-pandemic levels. Two key markets, Britain and China, have played a vital role in driving this recovery.
Daniel Grieder, the newly appointed Chief Executive who previously served as the head of Tommy Hilfiger, expressed confidence in the company’s ability to further drive business recovery in the second half of the year. Grieder is expected to present his strategy later on Wednesday, outlining the steps Hugo Boss will take to capitalize on the positive momentum.
During the second quarter, Hugo Boss saw a 5% decrease in sales for its core brand, Boss, when adjusted for currency fluctuations. However, its younger-targeted brand, Hugo, experienced a 2% increase in sales. The ongoing trend of remote working has led to a preference for more relaxed dressing, driving the continued acceleration in sales of casual styles. Additionally, there has been a recovery in sales of formalwear, due to pent-up demand for business and party fashion.
Despite facing a boycott called for by Chinese celebrities in response to Western accusations of forced labor in Xinjiang, Hugo Boss achieved a remarkable recovery in China. Sales in the country increased by 33% compared to 2019. In the United Kingdom, sales were up by 7% compared to pre-pandemic levels. Sales in Europe remained only 4% below 2019 figures, while in the Americas, they were down by 5%. It is important to note that approximately 20% of Hugo Boss’ global store network was still closed during the second quarter.
Looking ahead, the company maintains a positive outlook for its financial performance in fiscal year 2021. Hugo Boss reiterates its expectation of a currency-adjusted group sales increase between 30% and 35%. With the recovery in key markets and a well-prepared business strategy, Hugo Boss is poised to solidify and further its rebound in the fashion industry.
Useful Links:
1. Hugo Boss Official Website
2. Article: Hugo Boss Sales Jump in Q2 as China Helps Balance Challenges
