German brand Hugo Boss’ sales soar 20% in Q2 FY23

Luxury fashion group Hugo Boss has reported a 20 per cent year-on-year (YoY) rise in sales, adjusted for currency, to €1,026 million for the second quarter (Q2) of fiscal 2023 (FY23), up from €878 million in the same period in 2022. This represents a 17 per cent growth in the group’s currency. The current revenue performance comfortably surpasses pre-pandemic levels with a 52 per cent currency-adjusted increase, continuing the acceleration witnessed in the first quarter.

The robust top-line momentum resulted in a 21 per cent increase in the operating profit (EBIT) for Q2 FY23, taking the figure to €121 million, up from €100 million in Q2 FY22, Hugo Boss said in a press release.

Significant growth has been recorded across all brands, regions, and channels. The group’s digital business, in particular, experienced a further boost, reporting a 30 per cent currency-adjusted revenue increase compared to the prior year.

Hugo Boss reported 20 per cent YoY rise in Q2 FY23 sales to €1,026 million.
Strong growth was seen across all brands, regions, and channels, with a significant 30 per cent increase in digital revenues.
EMEA sales grew 15 per cent while the US saw a 16 per cent rise.
In Asia-Pacific, revenues were up 41 per cent, largely driven by China’s recovery.

Hugo Boss has also successfully executed its strategy in the brick-and-mortar retail sector, with revenues increasing by a solid 17 per cent compared to the previous year. This performance is mirrored in brick-and-mortar wholesale, where revenues also increased by 17 per cent, currency-adjusted.

Regionally, sales in the Europe, Middle East, and Africa (EMEA) region grew by 15 per cent on a currency-adjusted basis over the three-month period. This was fuelled by double-digit improvements in key European markets such as Germany (up 19 per cent) and France (up 15 per cent). The Middle East also maintained a strong growth trajectory.

In the Americas, Hugo Boss continued its successful double-digit growth with currency-adjusted sales up 20 per cent. This success spanned the entire region, with the crucial US market reporting a noteworthy increase of 16 per cent in currency-adjusted terms. All consumer touchpoints in the region contributed to this growth.

However, the most impressive growth came from the Asia-Pacific region, where revenues were 41 per cent above the prior-year level, currency-adjusted. This performance is attributed to both continuous double-digit growth in South East Asia and Pacific, and a rebound in the business in China, which reopened in late 2022. Consequently, currency-adjusted revenues in China increased by 56 per cent YoY, the release added.

“After our highly dynamic start to the year, we continued our strong performance also in the second quarter. Momentum once again exceeded our own high expectations, despite the overall challenging and uncertain market environment,” said Daniel Grieder, chief executive officer of Hugo Boss. “Following our strategy update in June, both brands Boss and Hugo successfully maintained their growth trajectory. We will make 2023 a new record year for Hugo Boss, thus providing a robust foundation for achieving our updated 2025 financial ambition.”

Fibre2Fashion News Desk (DP)

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