Hugo Boss hails strong Q3, casualwear booms, but formalwear grows too
German fashion giant Hugo Boss said on Wednesday that it saw strong growth in Q3. Currency-adjusted group sales actually leapt 40% year-on-year to €755 million and were also 7% above 2019 levels.
That came as it saw its “momentum in Europe and the Americas” accelerating and this was clear from the fact that sales were up 9% and 14%, respectively, on a two-year comparison.
And the strong growth in its own online business continued with sales here soaring 127% against Q3 2019.
It all resulted in EBIT 3% higher than two years ago at €85 million. And the FY21 full-year outlook includes currency-adjusted group sales up by around 40% year-on-year and EBIT between €175 million and €200 million.
The company said that the latest quarter was helped by a global store opening rate of around 95%, as well as a “meaningful uplift in consumer sentiment” in Europe and the Americas. But while Europe and the Americas proved buoyant, in Asia/Pacific, renewed Covid-related restrictions – including temporary store closures – weighed on consumer sentiment in various markets. As a result, revenues remained 1% below the prior-year level and 14% below that of 2019.
The group also “successfully executed several key brand, product, and sales initiatives as part of its CLAIM 5 strategy, thereby driving brand relevancy for Boss and Hugo and leveraging global business opportunities”.
Particularly important was that its strength in casualwear continued with sales up in double-digits versus 2019.
By brand, both Boss and Hugo posted “strong double-digit growth” in the third quarter with currency-adjusted sales up 38% and 51% against the prior-year period.
And as well as their casualwear proving strong, the brands’ formalwear offerings “picked up noticeably in the third quarter, reflecting the reoccurrence of social events over the summer”.
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