Hugo Boss, the renowned fashion brand, has experienced impressive growth in its third-quarter financial results. The company reported a significant increase in sales, with an 18% growth in currency-adjusted group sales compared to the previous year and a remarkable 27% increase compared to 2019. This growth was driven by strong performance in physical retail, which saw a remarkable 25% increase compared to 2019.

Both the Hugo and Boss brands, as well as all regions and channels, experienced double-digit revenue improvements. As a result of this strong performance, Hugo Boss now expects a sales growth of 25%-30% for the full year, reaching a record level of between €3.5 billion and €3.6 billion. Additionally, the company anticipates an increase in operating profit (EBIT) of 35%-45% to between €310 million and €330 million, surpassing their previous expectations.

CEO Daniel Grieder expressed great satisfaction with the company’s performance, stating that the broad-based growth continued seamlessly. He credited the successful execution of their ‘CLAIM 5’ strategy and expressed confidence in the important final quarter. Grieder believes that 2022 will not only be a record year for Hugo Boss, but also a major milestone towards achieving their 2025 targets.

The impressive figures in the third quarter demonstrate the success of Hugo Boss. Group sales reached a record high of €933 million in currency-adjusted sales, experiencing an 18% increase. The launch of the AW22 collections played a significant role in driving brand momentum, along with exciting marketing and product initiatives. Celebrity campaigns and fashion shows during Milan Fashion Week further propelled brand awareness, particularly among a younger demographic. The success of these strategies is evident in the strong sell-through rates, which surpassed pre-pandemic levels. Both the Hugo and Boss brands achieved double-digit revenue improvements, showcasing robust growth across all wearing occasions.

Boss Menswear saw a 20% increase in currency-adjusted sales compared to the previous year, while Boss Womenswear experienced a 13% increase, demonstrating significant acceleration over a three-year period. Hugo also achieved a 13% growth in currency-adjusted revenues year on year. Europe proved to be a strong market for Hugo Boss, with a 17% increase in currency-adjusted sales. The Americas and Asia/Pacific regions also saw robust momentum, with sales in both regions increasing by 18% and returning to double-digit growth, respectively. The South East Asia & Pacific market particularly stood out, achieving a remarkable 33% increase in currency-adjusted sales.

Hugo Boss’s success can be attributed to both its digital and physical stores. Digital channels experienced a currency-adjusted growth of 20%, driven by the increase in sales on e-flagship and digital revenues generated with partners. Physical retail also performed well, with an 18% increase in currency-adjusted revenues compared to the previous year and a significant 25% growth compared to three years ago. Physical wholesale also experienced an 18% increase, reflecting strong demand, although delivery shift effects limited growth to some extent.

Despite the impressive sales growth, operating profit (EBIT) rose by 8% to €92 million in the quarter. This increase lagged behind the sales rise due to ongoing investments in brand and product development. The company also experienced a moderate decline in gross margin and an increase in selling and distribution expenses. In particular, marketing investments saw a substantial increase of 39% to support the brand campaigns and fashion events of both Boss and Hugo, with the aim of driving global brand relevance.

With its strong brand momentum and successful execution of growth strategies, Hugo Boss continues to thrive. The exceptional third-quarter results suggest that the company is well on track to achieve a record-breaking year and reach its ambitious targets for 2025. As the fashion industry rebounds and consumer demand remains robust, Hugo Boss is poised to solidify its position as a leading global fashion brand.

Useful links:
Hugo Boss Official Website
Hugo Boss on Forbes