Luxury fashion brand Hugo Boss has reported impressive sales for the fourth quarter of 2021, surpassing expectations and setting a new record. The company’s preliminary results reveal a 51% increase in sales on a currency-adjusted basis, amounting to €906 million. On a reported basis, sales were up 55%. This growth can be attributed, in part, to a 12% increase compared to the fourth quarter of 2019. Digital sales accounted for 20% of the total, contributing to a profitable quarter with €100 million in earnings before interest and taxes (EBIT).

Despite the challenges posed by the COVID-19 pandemic, Hugo Boss experienced a significant year-on-year increase of 43% in currency-adjusted group sales for 2021. These sales were only 1% below the level achieved in 2019. The preliminary earnings before interest, taxes, depreciation, and amortization (EBITDA) for the year amounted to €228 million. The company plans to release its full final results on March 10.

Hugo Boss CEO Daniel Grieder expressed his satisfaction with the company’s performance, describing it as a “highly successful year.” He highlighted the acceleration in sales and earnings throughout the year, as well as the significant progress made in implementing the company’s new “CLAIM 5” growth strategy. Grieder emphasized upcoming milestones, including the introduction of new branding and the launch of the largest-ever marketing campaigns for the Boss and Hugo brands. He underscored the company’s commitment to driving brand relevancy in 2022.

Despite concerns about the ongoing pandemic, the fourth quarter of 2021 marked the most successful period in Hugo Boss’s financial history. While some stores remained closed, 98% of them were operational during the quarter. The company attributed its growth to strong consumer sentiment in key markets. Both the Boss and Hugo brands experienced significant sales improvements, driven by growth in all wearing occasions. Sales of casualwear and formalwear saw noticeable recoveries, with Boss and Hugo recording growth rates of 10% and 23%, respectively, compared to 2019 levels.

The strong sales performance was evident across all regions, with Europe and the Americas particularly robust. Both regions achieved double-digit sales increases year-on-year. In Europe, currency-adjusted revenues rose by 11%, with the UK, Germany, and France contributing to sales growth. The Americas saw a 22% increase in currency-adjusted sales, with the US market rising by 15% compared to pre-pandemic levels. Momentum also increased in the Asia/Pacific region, with high-single-digit revenue growth compared to the previous year and a 6% increase compared to 2019. Sales in mainland China grew by 18% compared to 2019.

Digital sales played a significant role in Hugo Boss’s success, accounting for 20% of total sales. The company experienced strong double-digit growth in online sales during the fourth quarter. Total digital sales, including the brand’s own website, digital pure players, marketplaces, and “bricks and clicks,” grew by 50% year-on-year and 85% compared to 2019. Hugo Boss aims to increase digital sales to between 25% and 30% of group sales by 2025. Its webstore digital sales reached €110 million in the final quarter of 2021, reflecting a 33% growth compared to the previous year and a 78% increase compared to 2019.

Overall, Hugo Boss’s retail business experienced a 51% increase in currency-adjusted sales compared to the previous year, and a 15% increase compared to 2019. Wholesale also saw significant growth, with a 60% increase compared to the prior year and a 7% increase compared to 2019. The company’s strong performance and strategic initiatives position it well for continued growth and brand relevancy in 2022.

Useful links:
1. [Hugo Boss official website](https://www.hugoboss.com/)
2. [Hugo Boss financial news](https://www.hugoboss.com/group/en/group/company/investor-relations/financial-news.html)