Thanks to the brand renewal that started last year, Hugo Boss's fashion is doing better again.
The Metzingen-based fashion group more than doubled its operating result in the second quarter from EUR 42 million in the previous year to EUR 100 million. A net amount of 58 million euros remained, which also more than doubled.
With an increase of 40 percent to 878 million euros, the group also achieved the highest turnover that Hugo Boss has ever generated in a second quarter, according to information on Wednesday. "We grew impressively in the first half of the year," said CEO Daniel Grieder. Hugo Boss has set itself the goal of being one of the world's top 100 brands.
Positive outlook for autumn and winter
The company is assuming that sales this year will reach a record level of 3.3 to 3.5 billion euros. Compared to the previous year, that would be an increase of 20 to 25 percent. For earnings before interest and taxes (EBIT), the group believes an increase of between 25 and 35 percent to 285 to 310 million euros is possible.
The CFO of the fashion group does not currently see any declining consumer sentiment among customers. The company recorded "very positive" demand in July, said Yves Müller. He was very satisfied with the development both in the Americas region and in Europe. In addition, the lifting of the lockdowns in China had a positive impact. Therefore, despite the overall difficult market environment, the autumn/winter season is also positive.
Brand rejuvenation
The company benefited from a makeover and rejuvenation of its brands. When it comes to marketing, the group now fully relies on digitally savvy customers. Müller sees increasing brand desirability. Hugo Boss had to give significantly fewer discounts, which had a positive effect on the result.
