German luxury firm Hugo posts strong Q3 preliminary results

19 Oct '21

2 min read

Pic: Hugo Boss

In its preliminary report for the third quarter (Q3) of FY21, German luxury fashion house Hugo Boss has posted 42 per cent sales jump to €755 million over the same period of previous fiscal, while 7 per cent up against Q3 FY19. The company’s sales were driven by strong performances in Europe and the Americas. Operating profit for the quarter surged to €85 million (Q3 FY20: €15 million).

Retail business sales for the Q3 increased 40 per cent on the prior-year level, while 13 per cent on a two-year stack basis, according to the company. Hugo Boss’ own online business recorded double-digit growth of 37 per cent versus the prior-year period, and 127 per cent on a two-year stack basis. Moreover, the wholesale channel sales improved 40 per cent versus the prior-year period, and remained 1 per cent below 2019 levels.

Regionally, sales in Europe advanced 38 per cent over Q3 FY20, and in the Americas, sales almost doubled versus the prior-year level, up 94 per cent. On the contrary, in Asia/Pacific where renewed COVID-19 related restrictions, including temporary store closures, weighed on consumer sentiment in various key markets, sales remained 1 per cent below the prior-year level and 14 per cent below that of 2019. While in China, sales decreased 9 per cent over the same period of last fiscal.

With the strong top- and bottom-line performance during the Q3, Hugo Boss has raised its outlook for fiscal 2021 and expects sales to grow around 40 per cent (FY20: €1,946 million), with contribution expected from all regions. EBIT is expected to be between €175 million and €200 million (loss: €236 million) during FY21.

Fibre2Fashion News Desk (JL)

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