After a good second quarter, Hugo Boss intends to continue his recovery at the end of the year

Hugo Boss announces a good second quarter for its financial year 2021, marked by a growth of 133% of its sales compared to the same period in 2020. The Metzingen-based company saw its turnover reach 629 million euros, again 4% below sales in the second quarter of 2019. The German group, however, said it expected the rebound in its activities to continue in the second half, with sales having returned to pre-pandemic levels in Great Britain. Brittany and China.

Hugo Boss targets 2.5 billion euros in sales in 2021 – Reuters

“We are well prepared to continue the resumption of our activities in the second half of the year,” said new managing director Daniel Grieder, former boss of Tommy Hilfiger, who presented his strategy later today on Wednesday. Hugo Boss stock was up 1.2% at 0738 GMT.

The company, known for its men’s suits, said its main brand Boss saw sales drop 5% to 541 million in currency-adjusted data, while Hugo, who targets a younger audience, saw sales increase. by 2% compared to 2019 levels, to 87 million euros.

As sales of comfortable and casual-style products continued to accelerate, with telecommuting favoring these outfits, Hugo Boss said he has also seen a resumption in sales of formal clothing due to pent-up demand for the outfits. of work but also of evening.

The group, which had already released preliminary results for the second quarter last month, said sales were up 7% from 2019 in the UK, and 33% in mainland China.

The European market (EMEA) remains its main market with 385 million euros in sales, followed by the Americas with 123 million and Asia-Pacific with 104 million. Its licensing activity brings it 17 million euros.

The recovery in China came despite calls to boycott Western brands in late March over Western accusations of forced labor in Xinjiang, when at least three Chinese celebrities said in March they were ditching Hugo Boss.

Meanwhile, sales in Europe were only 4% below 2019 levels and fell 5% in the Americas. This is while around 20% of the company’s global store network was still closed in the second quarter.

The company explained that it expects the group’s sales for fiscal 2021 to increase by 30 to 35 percent, or above 2.5 billion euros, against nearly 2.88 billion in 2019. It is also aiming for an operating result (EBIT) of at least 125 million euros, i.e. an operating margin of around less than 7% against nearly 12% in 2019.

With Reuters

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