German fashion house Hugo Boss has revised its 2023 outlook to reflect strong sales growth in the second quarter. The company’s recent brand revamp and marketing efforts have propelled its sales, leading to an upgrade in its annual sales forecast. Hugo Boss now expects its sales to increase by 12% to 15%, reaching a range of €4.1 billion to €4.2 billion, compared to its previous forecast of approximately 10% growth to €4 billion.

Furthermore, Hugo Boss anticipates a significant growth in its 2023 operating profit. The company expects its operating profit to grow by 20% to 25%, reaching €400 million to €420 million. This is a notable increase from its previous range of 10% to 20% growth.

The success of Hugo Boss’s brand revamp in 2022 has played a crucial role in overcoming challenges in the U.S., Europe, Middle East, and Africa (EMEA) markets. While the overall fashion sector in China faced a sluggish recovery, Hugo Boss managed to increase its sales in Asia, thanks to its revamped brand image. The company’s brands, Boss and Hugo, have gained market share globally, particularly among younger consumers.

In the second quarter, Hugo Boss reported a substantial increase of 20% in quarterly sales, amounting to €1.03 billion. This growth is particularly impressive considering that in the same period last year, the company reported sales of €878 million. Analysts’ expectations were met, with sales estimated to be around €1 billion.

Investors have responded positively to Hugo Boss’s strong performance, evident in a 2.1% rise in the company’s shares during pre-market trading on Lang & Schwarz. With the brand revamp paying off and sales on the rise, Hugo Boss is poised for continued success in the global fashion industry.

Useful links:
1. Hugo Boss official website
2. Hugo Boss news on Reuters