German fashion brand Hugo Boss has raised its outlook for fiscal 2022 (FY22) and expects sales to grow between 25 and 30 per cent to a record level of between €3.5 billion and €3.6 billion. It expects EBIT to increase between 35 and 45 per cent. In the third quarter (Q3) of FY22, the company’s currency-adjusted group sales increased by 18 per cent year-over-year and 27 per cent compared to 2019 levels.
Momentum in brick-and-mortar retail accelerated in the third quarter, rising by 25 per cent compared to 2019 and it witnessed a double-digit revenue improvement across both brands, all regions, and all channels. Hugo Boss’ EBIT amounted to €92 million in Q3; 8 per cent above the prior-year level, the company said in a media release.
“We look back on an extremely successful quarter, in which our broad-based growth continued seamlessly,” said Daniel Grieder, chief executive officer of Hugo Boss. “Building on our strong brand momentum, we look forward to the important final quarter with confidence. Thanks to the relentless execution of our ‘CLAIM 5’ strategy, we are well on track to make 2022 not only a record year for Hugo Boss, but also a major milestone along our 2025 targets.”
In the third quarter of 2022, Hugo Boss posted significant top-line growth, thereby continuing its strong momentum from the previous quarter. This development was once more fuelled by the successful execution of several brand and product initiatives as part of the company’s ‘CLAIM 5’ growth strategy. Group sales increased by 18 per cent currency-adjusted to €933 million (Q3 2021: €755 million), representing the highest quarterly sales in the history of Hugo Boss. In Group currency, this corresponds to an increase of 24 per cent. Compared to 2019 levels, currency-adjusted sales growth was 27 per cent (Q3 2019: €720 million).
The global launch of the Fall/Winter 2022 collections was accompanied by two star-studded campaigns in August. Both Boss and Hugo showcased their new collections during Milan Fashion Week in September. Strong sell-through rates, well above pre-pandemic levels, underline the success of both collections. Consequently, both Boss and Hugo posted double-digit revenue improvements in the third quarter with robust growth across all wearing occasions. While currency-adjusted sales for Boss Menswear were up 20 per cent against the prior-year period, sales for Boss Womenswear increased by 13 per cent and thus strongly accelerated on a three-year-stack basis. At Hugo, currency-adjusted revenues also grew by 13 per cent year over year.
Growth in the third quarter was once more broad-based with all regions recording double-digit sales improvements fuelled by robust consumer demand. In Europe, currency-adjusted sales increased by 17 per cent year over year, reflecting ongoing strong demand across key markets. Also in the Americas, momentum remained strong throughout the third quarter with currency-adjusted sales up 18 per cent year over year. Compared to 2019 levels, momentum in the Americas therefore remained virtually at the level of the second quarter, with currency-adjusted sales up 35 per cent. In Asia/Pacific, momentum also picked up strongly in the third quarter with revenues returning to double-digit growth. Significant double-digit improvements in Southeast Asia and Pacific spurred momentum in the whole region, with currency-adjusted sales consequently up 33 per cent year over year.
Currency-adjusted growth in the Group’s digital channels accelerated to 20 per cent compared to the prior-year period, reflecting both a double-digit sales increase in the Group’s digital flagship platform as well as strong improvements in digital revenues generated with partners. Also, momentum in brick-and-mortar retail remained strong, with currency-adjusted revenues up 18 per cent compared to the prior year. On a three-year-stack basis, growth in brick-and-mortar retail even accelerated to 25 per cent, with momentum strengthening across all three regions. In brick-and-mortar wholesale, currency-adjusted sales were up 18 per cent year over year. While this development reflects ongoing robust demand from wholesale partners for Boss and Hugo, delivery shift effects limited growth to some extent, the release added.
Fibre2Fashion News Desk (KD)