BERLIN – Hugo Boss has raised guidance for the second time this year on the back of continued growth over the second quarter. Sales for the company’s two brands, Boss and Hugo, rose 20 percent in currency-adjusted terms to bring in 1.02 billion euros altogether.
This brings the German premium brand’s sales to 1.99 billion euros for the first half of 2023.
“Momentum once again exceeded our own high expectations, despite the overall challenging and uncertain market environment,” Hugo Boss chief executive officer Daniel Grieder said in a statement, adding that the plan was to make 2023 “a new record year” for the company.
The results for the second quarter were broadly in line with market expectations; analysts had predicted sales of 1 billion euros for April, May and June.
As a result of the ongoing double-digit increase, Hugo Boss said it now expected to see sales growth of between 12 and 15 percent over the whole year, bringing in between 4.1 and 4.2 billion euros. The company’s goal is to make 5 billion euros by 2025.
At the beginning of the year, Hugo Boss’ outlook had been more modest, with growth expected at between 4 and 6 percent. The company had already raised outlook once this year, when it announced first-quarter results in early May.
Over the second quarter, the German brand did well in its most important home market of Europe, with sales growing 15 percent in currency-adjusted terms to 620 million euros.
The Americas have been a focus for the company’s reinvention of itself as a “24/7 lifestyle brand” and there, sales rose 20 percent to 236 million euros.
The Asia Pacific territory saw particularly strong growth of 41 percent, bringing in 144 million euros. The company said this was due in part to the ongoing recovery in greater China, which was in the middle of a COVID-19-related lockdown around the same time last year. In China, Hugo Boss revenues rose 56 percent year-on-year. Hugo Boss expects growth in this territory to end up somewhere between 25 and 30 percent for the whole year.
In terms of product lines, Boss menswear – the company’s more formal line and its mainstay – grew 18 percent in currency-adjusted terms to 810 million euros in the second quarter. Sales of Boss womenswear increased 32 percent to 67 million euros.
Meanwhile Hugo, the company’s more youthful, casual line, increased sales by 21 percent to 148 million euros.
As a result of all of the above, Hugo Boss’ EBIT – earnings before interest and taxes – rose 21 percent to 121 million euros, compared to 100 million euros at the same time last year.