Hugo Boss continues to experience tremendous success as its efforts to refresh its brand pay off in the third quarter. The company reported remarkable momentum, with an 18% increase in group sales adjusted for currency compared to the previous year, and an even more impressive 27% increase compared to 2019. Notably, physical retail also saw a significant acceleration in growth, with a 25% increase compared to 2019. This positive growth was seen across all regions, channels, and both the Hugo and Boss brands.
As a result of this strong performance, Hugo Boss has raised its full-year guidance, now expecting sales growth of 25%-30% and reaching a record level of €3.5 billion to €3.6 billion. Additionally, the company projects a 35%-45% increase in EBIT to €310 million to €330 million. CEO Daniel Grieder attributes this success to the company’s execution of its ‘CLAIM 5’ strategy and is optimistic that 2022 will be a record-breaking year for Hugo Boss.
The company’s Q3 figures boast impressive numbers, with an 18% increase in group sales, the highest quarterly figure in its history. The successful launch of the AW22 collections played a significant role in this growth, along with exciting marketing and product initiatives. Celebrity campaigns and participation in Milan Fashion Week’s fashion shows contributed to increased brand awareness, especially among a younger demographic.
Boss Menswear experienced a notable 20% increase in sales adjusted for currency, while Boss Womenswear saw a 13% increase. Hugo, the brand’s contemporary line, also had a remarkable 13% growth in revenue compared to the previous year. Europe showcased robust consumer demand, with a 17% increase in currency-adjusted sales, and the Americas and Asia/Pacific regions also saw strong momentum.
The company’s success in both digital and physical channels contributed to its overall growth. Digital channels experienced a commendable 20% increase in currency-adjusted growth, primarily driven by improvements in its e-flagship website and various digital partnerships. Physical retail also played a significant role, with an 18% increase in sales, and wholesale sales exhibited strong demand.
Despite the positive sales growth, the company’s operating profit (EBIT) only rose by 8% to €92 million in the quarter. This can be attributed to ongoing investments in branding and product development, as well as a decline in gross margin and an increase in selling and distribution expenses. The company also increased its marketing investments by 39% to support brand campaigns and fashion events.
Overall, Hugo Boss remains confident in its future success and its ability to achieve its 2025 targets. The positive sales growth and brand refresh in Q3 demonstrate the effectiveness of its strategies and position the company for continued growth and success.
Useful links:
– Hugo Boss Official Website
– Hugo Boss News
