Hugo Boss records strong growth in Q3, raises full year guidance
Hugo Boss Group sales increased by 18 per cent currency-adjusted to 933 million euros, representing the highest quarterly sales in the history of the company.
In group currency, this corresponds to an increase of 24 per cent. Compared to 2019 levels, currency-adjusted sales growth was 27 per cent.
“We look back on an extremely successful quarter, in which our broad-based growth continued seamlessly,” said Daniel Grieder, Chief Executive Officer of Hugo Boss.
Hugo Boss posts sales improvement across core brands
The company said, both Boss and Hugo posted double-digit revenue improvements in the third quarter with robust growth across all wearing occasions.
While currency-adjusted sales for Boss menswear were up 20 per cent against the prior-year period, sales for Boss womens wear increased by 13 per cent and thus strongly accelerated on a three-year-stack basis. At Hugo, currency-adjusted revenues also grew by 13 per cent year over year.
The company added that all regions also recorded double-digit sales improvements fueled by robust consumer demand.
In Europe, currency-adjusted sales increased by 17 percent, reflecting ongoing strong demand across key markets. Also in the Americas, momentum remained strong throughout the third quarter with currency-adjusted sales up 18 percent. Compared to 2019 levels, momentum in the Americas remained at the level of the second quarter, with currency-adjusted sales up 35 per cent.
In Asia/Pacific, revenues returned to double-digit growth. Significant double-digit improvements in South East Asia & Pacific spurred momentum in the whole region, with currency-adjusted sales consequently up 33 per cent year over year.
Hugo Boss reports momentum in digital as well as in brick-and-mortar retail.
Currency-adjusted growth in the group’s digital channels accelerated to 20 per cent compared to the prior-year period, reflecting both a double-digit sales increase in the group’s digital flagship Hugoboss.com as well as strong improvements in digital revenues generated with partners.
Also momentum in brick-and-mortar retail remained strong, with currency-adjusted revenues up 18 percent compared to the prior year. On a three-year-stack basis, growth in brick-and-mortar retail increased to 25 per cent, with momentum strengthening across all three regions.
In brick-and-mortar wholesale, currency-adjusted sales were up 18 per cent year over year.
Operating profit was up 8 per cent, while operating profit (EBIT) rose by 8 per cent to 92 million euros.
Hugo Boss raises outlook for full year 2022
In light of the strong financial performance in the third quarter, Hugo Boss has raised its top and bottom-line outlook for the current fiscal year.
Group sales for fiscal year 2022 are now expected to increase between 25 per cent and 30 per cent to a new record level of 3.5 billion euros to 3.6 billion euros compared to the prior estimate of increase between 20 per cent and 25 per cent to a level of 3.3 billion euros to 3.5 billion euros.
EBIT in 2022 is now expected to increase between 35 per cent and 45 per cent to a level of 310 million euros to 330 million euros against prior estimates of an increase between 25 per cent to 35 per cent to an amount of 285 million euros to 310 million euros.
