Hugo Boss records strong growth in Q3, raises full year guidance

Hugo Boss Group sales increased by 18 percent currency-adjusted to 933 million euros, representing the highest quarterly sales in the history of the company.

In group currency, this corresponds to an increase of 24 percent. Compared to 2019 levels, currency-adjusted sales growth was 27 percent.

“We look back on an extremely successful quarter, in which our broad-based growth contin­ued seamlessly,” said Daniel Grieder, chief executive officer of Hugo Boss.

Hugo Boss posts sales improvement across core brands

The company said, both Boss and Hugo posted double-digit revenue improvements in the third quarter with robust growth across all wearing occasions.

While currency-adjusted sales for Boss menswear were up 20 percent against the prior-year period, sales for Boss womenswear increased by 13 percent and thus strongly accelerated on a three-year-stack basis. At Hugo, currency-adjusted revenues also grew by 13 percent year over year.

The company added that all regions also recorded double-digit sales improvements fueled by robust consumer demand.

In Europe, currency-adjusted sales increased by 17 percent, reflecting ongoing strong demand across key markets. Also in the Americas, momentum remained strong throughout the third quarter with currency-adjusted sales up 18 percent. Compared to 2019 levels, momentum in the Americas remained at the level of the second quarter, with currency-adjusted sales up 35 percent.

In Asia/Pacific, revenues re­turned to double-digit growth. Significant double-digit improvements in South East Asia & Pacific spurred momentum in the whole region, with currency-adjusted sales consequently up 33 percent year over year.

Hugo Boss reports momentum in digital as well as in brick-and-mortar retail

Currency-adjusted growth in the group’s digi­tal channels accelerated to 20 percent compared to the prior-year period, reflecting both a double-digit sales increase in the group’s digital flagship Hugoboss.com as well as strong improve­ments in digital revenues generated with partners.

Also momentum in brick-and-mortar retail remained strong, with currency-adjusted revenues up 18 percent compared to the prior year. On a three-year-stack basis, growth in brick-and-mortar retail increased to 25 percent, with momentum strengthening across all three regions.

In brick-and-mortar wholesale, cur­rency-adjusted sales were up 18 percent year over year.

Operating profit was up 8 percent, while operating profit (EBIT) rose by 8 percent to 92 million euros.

Hugo Boss raises outlook for full year 2022

In light of the strong financial performance in the third quarter, Hugo Boss has raised its top and bottom-line outlook for the current fiscal year.

Group sales for fiscal year 2022 are now expected to increase between 25 percent and 30 percent to a new record level of 3.5 billion euros to 3.6 billion euros compared to the prior estimate of increase be­tween 20 percent and 25 percent to a level of 3.3 billion euros to 3.5 billion euros.

EBIT in 2022 is now expected to increase between 35 percent and 45 percent to a level of 310 million euros to 330 million euros against prior estimates of an increase between 25 percent to 35 percent to an amount of 285 million euros to 310 million euros.