Germany’s Hugo Boss reports €878 million in revenue for the second quarter, raising fiscal year outlook 22
Hugo Boss accelerated its financing and operations in the second quarter. Driven by the continued successful implementation of the company’s ‘Request Number 5’ growth strategy as well as Boss and Hugo’s bold brand refresh initiated in early 2022, the company says know in a press release.
In Europe, currency-adjusted sales grew 41% year-on-year in Q2, resulting in a strong three-year growth of 36%, with all major markets posting contribute. In the Americas, Hugo Boss drove currency-adjusted sales growth of 45% year over year, with three-year growth of 38%.
German fashion brand Hugo Boss group currency adjusted revenue in the second quarter of 2022 increased 34% to 878 million euros, up 29% from Q2 2019. Its EBIT for Q2 amounted to 100 million euros. The company now expects sales to grow to a record 3.3-3.5 billion euros (20-25%) and EBIT to grow to 285-310 million euros (25-35%) for the year. financial 2022 (FY22).
In Asia/Pacific, currency-adjusted revenue remains on par with the previous year’s level. Double-digit growth in Southeast Asia & Pacific offset a drop in sales in China, largely reflecting COVID-19-related temporary store closures throughout most of the quarter. II. Compared to pre-pandemic levels, sales in Asia-Pacific are down 4%.
From a channel perspective, the Group’s digital business continued successfully on a double-digit growth trajectory in Q2. Despite an exceptionally strong year-on-year increase in sales compared to the previous year. Currency-adjusted sales were up 11%. Compared to 2019, total digital sales more than doubled, up 128% in currency adjusted terms.
In addition, in the brick-and-mortar retail sector, Hugo Boss recorded a double-digit sales improvement, with sales up 38% year-over-year. Thus, three-year growth of up to 19% is currency-adjusted. Driven by strong wholesale partners demand for the latest Boss and Hugo collections combined with brand refreshes, wholesale sales are adjusted to the local currency. The traditional wholesale sector has grown by 51%. Compared to pre-pandemic levels, this is an 18% increase.
Considering the strong top and bottom operating results for the second quarter but also taking into account the ongoing macroeconomic uncertainties, Hugo Boss offered an outlook for the current fiscal. The Company now forecasts Group revenue for fiscal year 2022 to grow 20-25% from the previous guidance of 10-15%. EBIT in 2022 is now expected to grow from 25-35% to between 285-310 million euros compared with the previous guidance of 10-25% to 250-285 million euros.
Fiber2 Fashion News Desk (KD)
