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Branding refresh drives strong sales growth at Hugo Boss

By Prachi Singh

3 Aug 2022


Image: Hugo Boss AG

Hugo Boss currency-adjusted group sales increased 34 percent compared to the prior-year period.

In group currency, revenues were up 40 percent to 878 million in the three-month period, marking the strongest second quarter in the history of Hugo Boss.

Sales exceeded pre-pandemic levels, up 29 percent compared to 675 million euros.

“Our impressive growth in the first half of the year reflects the many successes related to our comprehensive branding refresh,” said Daniel Grieder, CEO of Hugo Boss.

Branding refresh fuels growth at Hugo and Boss

The company said in a statement that across brands, momentum was fueled by the successful branding refresh through several marketing initiatives, in particular the global brand campaigns for Boss and Hugo, new collections, and the launch of various capsule collections including Boss x Khaby and Hugo x Mr. Bathing Ape.

Currency-adjusted revenues for Boss menswear were up 35 percent and grew 29 percent as compared to 2019. Sales for Boss womenswear increased 23 percent currency-adjusted, translating into growth of 6 percent compared to 2019 levels.

At Hugo, currency-adjusted sales were up 37 percent, translating into growth of 39 percent on a three-year-stack basis.

In the second quarter, the operating profit (EBIT) more than doubled to 100 million euros. When compared to pre-pandemic levels, EBIT significantly improved by 25 percent.

Hugo Boss records strong growth in Europe and the Americas

From a regional perspective, the company added, growth was particularly strong in Europe and the Americas, with 41 percent and 45 percent year over year growth, respectively.

Compared to 2019 levels, Europe registered a 36 percent increase driven by double-digit improvements in key markets such as Great Britain, France, and Germany.

Also in the Americas, sales exceeded 2019 levels by 38 percent with all markets contributing. In the important U.S. market revenue growth saw a further acceleration compared to the first quarter of 2022.

In Asia/Pacific, currency-adjusted revenues remained on par with the prior-year level. Strong double-digit growth in South East Asia & Pacific compensated for a sales decline in mainland China, largely reflecting Covid-19-related temporary store closures throughout much of the second quarter. As compared to pre-pandemic levels, sales in Asia/Pacific were down 4 percent.

The group’s digital business recorded an 11 percent currency-adjusted rise against a particularly strong comparison base. Compared to pre-pandemic levels, total digital revenues more than doubled, up 128 percent currency-adjusted.

Also in brick-and-mortar retail, Hugo Boss currency-adjusted revenues were up 38 percent compared to the prior year and three-year-stack growth amounting to 19 percent.

In brick-and-mortar wholesale, on the other hand, currency-adjusted revenues increased 51 percent, fueled by wholesale partners’ strong demand for the latest Boss and Hugo collections. On a three-year-stack basis, growth accelerated to 18 percent.

Hugo Boss raises outlook for full year 2022

On the back of the strong financial performance in the second quarter, the company has raised its top- and bottom-line outlook for the current fiscal year while taking into account both ongoing investments into its business as part of “Claim 5” as well as persisting high levels of macroeconomic uncertainty.

The company now forecasts group sales in fiscal year 2022 to increase between 20 percent and 25 percent to between 3.3 billion euros and 3.5 billion euros compared to prior guidance of an increase between 10 percent and 15 percent to between 3.1 billion euros and 3.2 billion euros.

EBIT is now expected to increase between 25 percent and 35 percent to a level of between 285 million euros and 310 million euros in 2022 against prior guidance of an increase of between 10 percent to 25 percent to an amount of between 250 million euros and 285 million euros.