Hugo Boss has announced a successful second quarter, leading the company to revise its full-year outlook. The company attributes this positive performance to the implementation of its CLAIM 5 growth strategy and the bold rebranding of its Boss and Hugo lines earlier this year.
In the second quarter, Hugo Boss reported a 34% increase in currency-adjusted group sales, amounting to €878 million. When reported in euros, the growth was even stronger at 40%. These figures also reveal a 29% surge compared to the same period in 2019, marking the company’s strongest second quarter ever. The robust demand in Europe and the Americas played a significant role in driving this success.
On an earnings before interest and taxes (EBIT) basis, Hugo Boss achieved a profit of €100 million, surpassing the previous year’s level of €42 million. This can be attributed to the strong group sales and an improvement in gross margin, thanks to a higher proportion of full-price sales. EBIT has seen a 25% increase from pre-pandemic levels.
In Europe, Hugo Boss witnessed a 41% growth in currency-adjusted sales compared to the previous year, with all major markets contributing to this growth. Similarly, the Americas reported a 45% increase in currency-adjusted sales. While Asia/Pacific maintained the previous year’s level, there was double-digit growth in South East Asia & Pacific, compensating for a sales decline in China due to temporary store closures related to Covid-19. Compared to pre-pandemic levels, sales in Asia/Pacific were down 4%.
Hugo Boss’s digital business continued to thrive, experiencing a double-digit growth of 11% in currency-adjusted sales. Compared to 2019, total digital sales more than doubled, showing a remarkable 128% growth. The company also noted a double-digit increase in physical retail sales, with a 38% rise compared to the prior year and a 19% increase compared to three years ago. This growth was primarily driven by strong demand from wholesale partners for the revamped Boss and Hugo collections.
For the remainder of the year, Hugo Boss anticipates sales to reach a record of at least €3.3 billion, with the potential to reach €3.5 billion, representing a 20% to 25% increase. EBIT is also expected to rise between 25% and 35%, ranging from €285 million to €310 million.
[Link 1: Hugo Boss Official Website](https://www.hugoboss.com/) [Link 2: Business Insider Article on Hugo Boss’s Q2 Performance](https://www.businessinsider.com/hugo-boss-reports-strong-q2-performance-revises-full-year-outlook-2022-7)
