Home News Hugo Boss Brand Refresh Brings Another Sales Increase in Q2 – WWD

Hugo Boss Brand Refresh Brings Another Sales Increase in Q2 – WWD

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Hugo Boss’ marketing campaigns continued to pay dividends, helping to send sales up 34 percent, currency adjusted, during the second quarter of this year to 878 million euros.

The company, best known for its men’s formal wear, had seen sales plummet during the pandemic as events were cancelled and consumers worked from home. A new manager with a new strategy were brought in to spark growth.

“Our impressive growth in the first half of the year reflects the many successes related to our comprehensive branding refresh,” Hugo Boss chief executive officer, Daniel Grieder, said in a statement. Grieder has been in the job since the middle of last year.

First-half sales gain 42 percent  to 1.65 billion euros.

As a result, Hugo Boss raised its guidance for the full year. Previously the company thought it might see sales growth of between 10 and 15 percent. Now, it said, it expected between 20 and 25 percent growth, bringing in between 3.3 billion and 3.5 billion euros over the whole year.

Last year, Hugo Boss made 2.79 billion euros in sales.

In mid-July, Hugo Boss had released preliminary results for this quarter, stating it would likely raise guidance. Market analysts from the likes of the Royal Bank of Canada, Morgan Stanley and Baader Bank all welcomed the news, saying that the fast-paced brand refresh showed the company was now heading in the right direction.

Some analysts expressed concern about whether market conditions, increased inflation and a corresponding drop in consumer sentiment might eventually have a detrimental impact – Hugo Boss has previously said it would need to raise prices later this year – while others were positive about the fact that Hugo Boss was not as exposed to the ailing Chinese market as some clothing makers.

At the same time, the German marquee brand also said costs had risen. Operating expenses rose 34 percent during the quarter to hit 458 million euros. Of that, marketing expenses had gone up 29 percent during Q2, with a spend of 58 million euros on extending the brand refresh as well as a number of attention-getting social media campaigns, capsule collections and collaborations.

Social media star Khaby Lame for Hugo Boss.

Courtesy / Hugo Boss

The company said its sales of menswear in the more formal Boss category, which includes suits and which still makes up the bulk of the company’s sales, had risen 35 percent, currency adjusted, to 701 million euros during the second quarter.

As events like weddings were being scheduled again and offices re-opened, Boss sales “exceeded pre-pandemic levels for the first time,” the company reported. Womenswear in this category brought in 52 million euros.

Meanwhile, the more casual Hugo category grew 37 percent, currency adjusted, to 125 million euros in Q2. Offerings in this category include athletic wear and an ongoing collaboration with the NBA.

In North America, Hugo Boss recorded a sales increase of 23 percent. This fed into a rise of 45 percent, currency adjusted, in the Americas territory altogether this quarter. The brand saw a total of 200 million euros in sales there.

Hugo Boss’ home market of Europe remains its biggest though. There, the company saw a 41 percent increase, currency adjusted, in sales to hit 549 million euros. It credited particularly good momentum in France and the U.K. for the positive results.

The company has previously said it was not as exposed to the Chinese market and, unlike many, had mostly avoided fallout from a political boycott of Western-made goods there. However this quarter, it still had to cope with pandemic-related store closures and recorded a 34 percent decrease in sales in greater China. However double-digit growth in other parts of the Asia-Pacific territory meant that Hugo Boss’ sales remained flat during the second quarter. The brand made 110 million euros in sales there during Q2.



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