Hugo Boss attributes the €1.03bn ($1.13bn) sale increase to broad-based growth of both brands as well as all regions and sales channels.
GlobalData’s head of apparel, Chloe Collins notes the sales represent a slight slowdown from the company’s Q1 when sales shot up 25.4%.
She says: “This is unsurprising given the inflationary pressures taking hold of consumers” but she adds: “Most impressively, it has firmly beat its own expectations once more.”
Daniel Grieder, CEO of Hugo Boss comments: “After an extremely positive start to the year, we also showed a strong performance in the second quarter. Despite the overall challenging and uncertain market environment, we were once again able to exceed our own high expectations.”
In EMEA sales were up 15% on a currency-neutral basis in the three-month period and the US grew 16%.
The company explains both EMEA and Americas continued to benefit from local consumer demand and a pick-up in tourism.
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However, Collins describes its US growth as surprising given the “wider apparel market is suffering as consumer spending has finally slowed due to inflation.”
Asia/Pacific recorded a growth of 41% and its performance was driven by both sustained double-digit growth in Southeast Asia & Pacific as well as the reopening of China allowing markets to rise 56% year-on-year on a currency-neutral basis.
Key highlights from Hugo Boss Q2 results:
- Operating profit (EBIT) increased 21% to €121m
- Revenues for Boss menswear were up 18%, and womenswear jumped 32%
- Brick-and-mortar retail revenues up 17%
Collins touches on Boss womenswear’s outperformance of Boss menswear being a reflection of the company pushing the appeal of the brand towards female shoppers along with the addition of high-profile ambassadors.
She says: “The group also aims to continue boosting demand amongst younger shoppers, with the announcement of its new streetwear-inspired line Hugo Blue for Spring/Summer 2024, specialising in denim.”
She believes this will also help it on its journey to becoming a 24/7 lifestyle brand, as will building its sportswear presence with the announcement of its new cycling partnerships in June, including Boss as the new sponsor of the Tudor Pro Cycling Team.
The retailer now forecasts full-year group sales to grow 12% to 15% (€4.1bn to €4.2bn), up from its previous 10% growth forecast.
EBIT is expected to increase by 20% to 25% in 2023.
Greider concludes: “We will make 2023 a new record year for Hugo Boss and thus lay an important foundation for achieving our increased financial targets for 2025.”