Hugo Boss has started the year on a positive note, despite the challenges faced over the past year. The company reported its first-quarter sales, which showed a currency-adjusted decline of 8% (or 10% in total), reaching €497 million. However, Hugo Boss considers this to be a positive outcome given the circumstances. The company also generated a positive EBIT of €1 million in Q1.
One of the major factors contributing to this result was the strong performance in mainland China, where sales nearly doubled during the quarter. The online business also continued to show momentum, with a significant 72% increase in sales. This growth can be attributed to the success of Hugo Boss’s expanding online operations and its partnerships.
Despite these positive results, the company did face challenges, particularly with store closures due to lockdown measures. As a result, retail sales were down 14% in Q1, while wholesale saw a 1% increase (both currency-adjusted). The wholesale channel benefited from a strong order intake for the SS21 collections of Boss and Hugo. Hugo Boss strategically shifted the delivery of these collections from the second quarter to the first, ensuring product availability after the lockdowns were lifted.
Although Boss and Hugo experienced declines in currency-adjusted sales of 8% and 6% respectively, their casualwear offerings performed well. Casualwear sales accounted for around 50% of total sales in Q1 and returned to mid-single-digit growth. This was driven by high demand across all product categories and strong sell-through of the latest Boss x Russell Athletic and Boss x NBA capsules.
Yves Müller, managing board spokesperson, expressed optimism for the year ahead, highlighting the solid start and promising prospects. Müller emphasized the progress made in strategic growth drivers like online sales, mainland China, and casualwear, which are all showing accelerating momentum. As a result, Hugo Boss expects both sales and EBIT to recover noticeably throughout 2021.
In terms of regional performance, European markets continue to be affected by the pandemic. Sales in Europe decreased by 17% to €299 million, with many of the company’s own shops closed during the first three months of the year. The UK, France, and Germany experienced weakness, adding to the challenges faced in the European market.
On the other hand, the US market showed improvement, and wholesale performance remained strong, leading to increased sales in the quarter. American currency-adjusted sales were only down by 11%, reaching €80 million, as consumer sentiment rebounded. The Chinese market’s strength also contributed to sales growth in the Asia-Pacific region, which saw a currency-adjusted increase of 39%, totaling €101 million. This success in China was driven by robust local demand and a successful Chinese New Year period.
Useful links:
– Hugo Boss Official Website
– Hugo Boss Group Revenue Statistics
