German fashion house Hugo Boss achieves Q3 sales of €755 mn

08 Nov '21

2 min read

Pic: Hugo Boss

Hugo Boss, a German luxury fashion house, has reported a 42 per cent sales growth to €755 million during the third quarter (Q3) of FY21 ended on September 30, 2021, against the same period of previous fiscal, while 5 per cent up from Q3 FY19. The company’s operating result (EBIT) for the quarter escalated to €85 million (Q3 FY20: €15 million).

“We look back on a very strong quarter with both sales and earnings exceeding pre-pandemic levels,” Daniel Grieder, chief executive officer of Hugo Boss, said in a press release. “We also made first great strides in successfully executing our Claim 5 strategy, particularly when it comes to boosting our brands among younger consumers.”

“The spectacular launch of our second Boss x Russell Athletic collection is a blueprint of how we will fully unlock our brands’ great potential together as a team in the future,” Grieder added.

Gross profit in Q3 increased by 41 per cent to €466 million, while operating expenses totalled to €381 million. Net income attributable to shareholders skyrocketed over 100 per cent to €53 million.

With nearly all stores back in operation, sales from Europe grew by 38 per cent from Q3 FY20 with key markets like UK, France, and Germany exceed over 2019 levels, while Americas recorded 94 per cent growth. However, temporary store closures in the Southeast Asia hindered the sales from Asia/Pacific region which dropped by 1 per cent from the third quarter of 2020.

Hugo Boss’s retail and wholesale sales both surged by 40 per cent, while online business improved by 37 per cent, over the third quarter of FY20.

In its outlook, the German company said that it forecasts sales to increase by around 40 per cent during FY21, up from prior guidance to be between 30-35 per cent, with contributions expected from all regions. Moreover, EBIT is expected to be between €175 million and €200 million.

Fibre2Fashion News Desk (JL)

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