Hugo Boss raises full year outlook after strong Q2

On a preliminary basis, currency-adjusted sales at Hugo Boss Ag increased 34 percent in the second quarter compared to the prior-year period.

In group currency, the company said in a statement, revenues were up 40 percent, totaling 878 million euros, marking the strongest second quarter in the history of Hugo Boss.

Raising its outlook for the year ahead, the company now forecasts group sales to increase between 20 percent and 25 percent and EBIT to increase between 25 percent and 35 percent.

Demand acceleration in Europe and the Americas boosts Hugo Boss sales

Compared to the second quarter of 2019, currency-adjusted group sales increased by 29 percent, driven by strong demand in Europe and the Americas.

In Europe, currency-adjusted sales were up 41 percent, translating into robust three year-stock growth of 36 percent, with all major markets contributing.

In the Americas, Hugo Boss saw currency-adjusted sales growth of 45 percent, with three-year-stack growth amounting to 38 percent.

In Asia/Pacific, the company added, currency-adjusted revenues remained on par with the prior-year level. Double-digit growth in South East Asia & Pacific compensated for a sales decline in China, largely reflecting Covid-19-related temporary store closures throughout much of the second quarter. As compared to pre-pandemic levels, sales in Asia/Pacific were down 4 percent.

Hugo Boss posts sales growth across retail channels

The group’s currency-adjusted digital sales were up 11 percent, while compared to 2019, total digital sales more than doubled, up 128 percent currency-adjusted.

Also in brick-and-mortar retail, Hugo Boss recorded double-digit sales improvements, with revenues up 38 percent compared to the prior year. Consequently, three-year-stack growth amounted to 19 percent currency-adjusted.

The group’s currency-adjusted sales in brick-and-mortar wholesale grew 51 percent. As compared to pre-pandemic levels, this translates into an increase of 18 percent.

Hugo Boss raises outlook on strong Q2

In the second quarter of 2022, on a preliminary basis, the company generated an operating profit (EBIT) of 100 million euros, significantly above the prior-year level of 42 million euros. Compared to pre-pandemic levels, EBIT was up 25 percent.

The company further said that in light of the strong top- and bottom-line performance in the second quarter but also taking into account the ongoing macroeconomic uncertainties, Hugo Boss raises its outlook for the current fiscal year.

The company now forecasts group sales in fiscal year 2022 to increase between 20 percent and 25 percent to between 3.3 billion euros and 3.5 billion euros compared to prior guidance of increase between 10 percent and 15 percent to a level between 3.1 billion euros and 3.2 billion euros.

EBIT in 2022 is now expected to increase between 25 percent and 35 percent to a level of between 285 million euros and 310 million euros compared to the prior guidance of increase of between 10 percent to 25 percent to an amount of between 250 million euros and 285 million euros.

Hugo Boss will publish its full second quarter results on August 3, 2022.