Hugo Boss is celebrating a successful year, as the company recently raised its full-year outlook after a strong second quarter. The brand attributes this achievement to the implementation of its CLAIM 5 growth strategy and the bold revamp of its Boss and Hugo branding at the beginning of the year.

During Q2, the company experienced an impressive 34% increase in group sales, amounting to €878 million compared to the previous year. These sales were also 29% higher than in Q2 2019, marking the brand’s strongest second quarter to date. The growth in sales was primarily driven by robust demand in Europe and the Americas.

The company’s profits, measured on an EBIT basis, also saw a significant improvement, reaching €100 million compared to €42 million in the previous year. This boost can be attributed to the higher group sales and the enhancement of the gross margin, mainly due to a higher proportion of full-price sales. In comparison to pre-pandemic levels, EBIT showed a remarkable increase of 25%.

In Europe, Hugo Boss experienced a remarkable 41% surge in sales compared to the previous year, with all major markets contributing to this growth. The Americas also witnessed substantial sales growth, with a 45% increase year-on-year and a 38% increase compared to three years ago. However, sales in Asia/Pacific remained steady compared to the prior year, with double-digit growth in South East Asia & Pacific offsetting a decline in China due to temporary store closures caused by Covid-19. In comparison to pre-pandemic levels, sales in Asia/Pacific experienced a decline of 4%.

Hugo Boss’s digital business continued to thrive, with a notable 11% increase in sales compared to the previous year. When compared to 2019, total digital sales more than doubled, showing an impressive 128% increase. Physical retail also exhibited remarkable performance, with double-digit sales growth compared to the previous year (38%) and three years ago (19%). This growth was fueled by strong demand from wholesale partners for the latest Boss and Hugo collections following the branding refresh. Physical wholesale sales soared by 51% compared to the previous year and 18% compared to 2019.

Looking ahead, the company now expects sales for the year to reach a record-breaking €3.3 billion, with a potential to even reach €3.5 billion. This represents an anticipated increase of between 20% and 25%. EBIT is also expected to rise by 25% to 35%, reaching anywhere from €285 million to €310 million. With its exceptional performance in Q2 and a positive outlook for the rest of the year, Hugo Boss is set to continue its success and further solidify its position in the fashion industry.

Useful links:
Hugo Boss Official Website
Hugo Boss on Reuters