Hugo Boss raised its forecast for annual sales following a strong second quarter — predicting it could reach a record €3.5 billion only seven months after a high-profile brand refresh refocusing Boss for millennials and Hugo for Gen Z.
Sales rose 34 per cent year-on-year to €878 million in the second quarter, driven by demand in Europe and the Americas, and a brand refresh at the start of 2022. That’s 29 per cent above 2019, before the pandemic. The shares rose as much as 2.8 per cent.
In Daniel Grieder’s first year as chief executive, sales at Hugo Boss climbed 43 per cent to €2.8 billion as he pushes his new strategic agenda forward.
In Europe, sales were up 41 per cent, and up 45 per cent in the Americas. China lagged due to Covid-19 related store closures, though double-digit growth in South East Asia and Pacific offset the decline, levelling out revenues in the APAC region.
Operating profit more than doubled to €100 million in Q2, from €42 million the year before, as it sold more at full price. Hugo Boss now expects full-year sales to increase 20 to 25 per cent to a record of between €3.3 billion and €3.5 billion, up from prior guidance of a 10 to 15 per cent increase.
CEO Daniel Grieder, who joined in June 2021, is leading a new growth strategy called ‘Claim 5’, which is based on five pillars: boost brands, product is king, lead in digital, rebalance omnichannel, and organise for growth.
“The strong acceleration of our business performance in the second quarter impressively demonstrates the successful execution of our ‘Claim 5’ strategy, only one year after its introduction,” said Grieder in a statement. “Our bold branding refresh resonates extremely well with our customers around the globe and will further drive brand momentum.”
BOSS new store in London at Oxford Street
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