During the online annual general meeting of German fashion house Hugo Boss, CEO Mark Langer expressed his optimism for a potential recovery in the business by the third quarter, at the earliest. However, he also acknowledged the need to prepare for a tough second quarter. The impact of the ongoing coronavirus pandemic, including store closures and consumer caution, has hit Europe and America particularly hard, taking a toll on 85% of Hugo Boss’ sales. Langer is hopeful that the market environment will gradually improve from the third quarter onwards, although the improvement may be small at first.
Despite the reopening of Hugo Boss stores in China and the gradual reopening in other regions, the company recently issued a warning that second quarter sales are expected to drop by at least 50%. This highlights the significant challenges that the fashion industry will continue to face in the months ahead.
It is evident that the fashion industry has a long and arduous journey to recovery, and navigating through the uncertainties of the current situation remains a daunting task. However, Hugo Boss remains determined to adapt to the evolving market conditions and overcome the obstacles that lie ahead.