Hugo Boss had an exceptionally strong first quarter, experiencing accelerated brand momentum globally as a result of a successful branding refresh. The fashion giant reported a remarkable 52% growth in currency-adjusted group sales, reaching €772 million, which was 17% higher compared to 2019. Sales in Europe and the Americas particularly stood out, with a 21% and 17% increase respectively compared to the same quarter in 2019. Additionally, the company saw a significant increase in profit on an EBIT basis, reaching €40 million in Q1, compared to just €1 million in the previous year.
CEO Daniel Grieder expressed his satisfaction with the company’s performance, emphasizing that they have achieved record first-quarter sales, setting a strong foundation for fiscal year 2022. he attributed this success to the bold branding refresh and the successful implementation of their ‘CLAIM 5′ strategy. Looking ahead, Hugo Boss is confident in its full-year outlook, expecting sales to increase between 10% and 15%, reaching a new record of €3.1 billion to €3.2 billion. The company forecasts a range of +10% to +25% for EBIT, equivalent to €250 million to €285 million.
The reinvention of the Boss and Hugo brands played a vital role in Hugo Boss’ strong performance. The transformation focused on a more casual approach, targeting a younger consumer demographic. This strategic shift was supported by substantial investments in new products, successful marketing campaigns, and digital relaunches. Consequently, Boss Menswear and Womenswear experienced a remarkable 53% and 41% growth in currency-adjusted sales respectively, while Hugo saw an overall increase of 52%.
Geographically, Europe and the Americas continued to show robust momentum. In Europe, currency-adjusted sales increased by 69%, resulting in a 21% growth on a three-year-stack basis. The company attributes this growth to strong local demand, particularly in key markets like Great Britain and France. Despite challenges posed by the war in Ukraine and the suspension of business activities in Russia, Eastern Europe still displayed substantial momentum.
In the Americas, currency-adjusted revenues rose by 56% compared to the previous year, with all markets in the region experiencing sales increases compared to pre-pandemic levels. The Asia Pacific region also showed positive results, although renewed Covid-related restrictions affected consumer sentiment and store traffic in mainland China towards the end of the quarter. Nonetheless, sales in mainland China increased by 12% compared to 2019 levels, although they remained 13% below the prior-year period.
Hugo Boss’ digital business continued to thrive, with double-digit growth in both its own webstores and transactions through partners. Q1 currency-adjusted sales increased by 22%, despite strong figures from the previous year. Compared to 2019 levels, total digital sales skyrocketed by an impressive 145%. Physical stores also experienced significant growth, with revenues increasing by 76%, partly due to temporary store closures in the prior-year period. Physical store sales via wholesale also grew by 44%, reaching pre-pandemic levels, reflecting the demand for the refreshed SS22 collections from wholesale partners.
Useful links:
1. Hugo Boss Official Website
2. Market Volume of Luxury Apparel and Footwear Sector in Europe
