Fashion group Hugo Boss is experiencing strong sales momentum as it undergoes a strategic repositioning of its brands. The company reported a 34% increase in revenue in the second quarter, reaching €878 million, marking a 40% increase in revenues. These results are a direct outcome of the growth strategy implemented by the company last year.
To rejuvenate the Boss and Hugo brands and attract new generations of consumers, Hugo Boss has implemented several initiatives. These include redesigned logos, ambassador appointments, sponsorships, and TikTok challenges. These efforts have proven fruitful, as the company experienced its strongest quarter on record.
The Americas and Europe were the regions with the highest growth for Hugo Boss in the second quarter. Sales in the Americas increased by 45%, while sales in Europe saw a significant 41% growth compared to the previous year. This performance was driven by double-digit growth in key markets like the UK, Germany, and France. These markets served as a pilot for the company’s new second-hand offering.
In contrast, the Asia-Pacific region reported stable revenue compared to the previous year. Strong growth in Southeast Asia and the Pacific offset the decline in sales in China. The impact of Covid-19-related health measures on retail activity in China contributed to the decrease in sales in the region.
While online sales experienced an 11% increase in the second quarter, the pandemic continues to affect e-commerce. Nevertheless, e-commerce saw a substantial overall increase of 128% compared to 2019. Despite these challenges, the company’s operating profit also increased by 25% compared to 2019.
Based on these positive results, along with active investment and prevailing macroeconomic uncertainty, Hugo Boss has raised its outlook for the current year. The company now forecasts a sales increase of 20% to 25% for the financial year 2022, surpassing previous estimates of 10% to 15%. Additionally, Hugo Boss aims to achieve a record-breaking revenue of between €3.3 billion and €3.5 billion by the end of 2022.
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