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By
Reuters API
Published
Aug 4, 2021
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Hugo Boss expects recovery to continue through 2021

By
Reuters API
Published
Aug 4, 2021

German fashion house Hugo Boss said it expected a rebound in its business to continue in the second half of the year as sales almost recovered to pre-pandemic levels in the second quarter.


Reuters


Sales recovered in key markets such as Britain and China in the quarter. “We are well prepared to further drive our business recovery also in the second half of the year,” said new Chief Executive Daniel Grieder, the former Tommy Hilfiger boss who is due to present his strategy later on Wednesday.

The company said its core Boss brand saw sales down a currency-adjusted 5%, while Hugo, aimed at a younger audience, reported sales rose 2%.

While sales of casual styles continued to accelerate, as the working-from-home trend boosts more relaxed dressing, Hugo Boss said it had also seen a recovery in sales of formalwear due to pent-up demand for business and party fashion.

Hugo Boss, which had already reported preliminary second-quarter results last month, said sales were up 7% compared to 2019 in the United Kingdom, and up 33% in mainland China.

The recovery in China came despite calls for a boycott of Western brands launched in late March over Western accusations of forced labour in Xinjiang when at least three Chinese celebrities said in March they were dropping Hugo Boss.

Meanwhile, sales in Europe were just 4% below levels recorded in 2019 and were down 5% in the Americas. Around 20% of the company’s global store network was still closed during the second quarter.

The company reiterated that it expects currency-adjusted group sales in fiscal year 2021 to increase by between 30% and 35%.

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