Fashion retailer Hugo Boss has experienced a robust recovery in 2021 and is optimistic about its outlook for the coming year. The company announced that its group sales reached €2.786 billion, surpassing pre-pandemic levels and marking a growth of 43%. Furthermore, its EBIT showed remarkable improvement, rising to €228 million compared to a loss of €236 million in the previous year. This success can be attributed to efficiency gains, particularly in its own retail business, as well as stringent cost management. Hugo Boss also achieved record levels of free cash flow and net financial position.
The brand has focused on reinventing its key brands, Hugo and Boss, and emphasized the success of its branding refresh and strong digital presence as key highlights of 2021. The company received positive feedback on its SS22 collections, which fully embodied the refreshed branding. Notably, digital sales accounted for 20% of total sales for the first time ever in 2021.
Looking ahead, Hugo Boss anticipates sales to reach an all-time high between €3.1 billion and €3.2 billion, representing a growth rate of 10% to 15% for the current year. EBIT is also expected to increase between 10% and 25%, ranging from €250 million to €285 million. Investors, including the UK’s Frasers group, which recently increased its stake in the company, are hopeful that Hugo Boss can surpass its sales and earnings targets for 2022.
In 2021, Hugo Boss witnessed sales rebounding to pre-pandemic levels, with growth seen across all regions and distribution channels. The company attributes this to a recovery in global consumer sentiment during the second quarter. Furthermore, successful execution of key brand, product, and sales initiatives contributed to its strong performance in the latter half of the year. The company’s branding refresh, initiated in January, has been well-received, and Hugo Boss is committed to supporting its brands, reporting high sell-through rates both in physical and online stores. Marketing investments will be increased, focusing on social media, events, and collaborations to generate buzz around the brands. Additionally, investing in product development to enhance comfort and casualness for all occasions will establish Boss as a lifestyle brand and position Hugo as a preferred choice for younger customers. Digitalization and modernization of the store network will continue to receive investments, with the opening of the first global anchor store on London’s Oxford Street in Q2 2022 being a significant milestone.
Overall, Hugo Boss is confident in its strong recovery and growth prospects for 2022. The implementation of strategic initiatives, along with a focus on brand rejuvenation, digitalization, and product development, is expected to drive continued success in the fashion industry.
Useful links:
– Hugo Boss Official Website
– Hugo Boss Optimistic about 2022 After Sales Bounce Back – Reuters
