Luxury brand Hugo Boss reported second-quarter sales increased 20 percent to EUR 1.03 billion (USD 1.13 billion), on the back of double-digit growth across all brands, regions, and channels.
While business in EMEA and the Americas continued to benefit from both robust local consumer demand and a pick up in tourist business, Asia Pacific recorded “superior growth” in the second quarter at the German fashion company.
In Asia Pacific, currency-adjusted revenues came in 41 percent above the prior-year level, driven by both sustained double-digit growth in Southeast Asia and Pacific, as well as a further recovery in the business in China following the market’s reopening in late 2022. Currency-adjusted revenues in China increased by 56 percent year-over-year, added Boss.
By channel, the group’s overall digital business further accelerated during the quarter, with revenues up 30 percent currency-adjusted compared to the prior-year level. Brick-and-mortar retail clocked double-digit sales improvements with revenues up 17 percent compared to the prior year.
On the back of the strong top-line improvements, Hugo Boss also significantly increased its EBIT in the second quarter, up 21 percent to EUR 121 million.
“After our highly dynamic start to the year, we continued our strong performance also in the second quarter. Momentum once again exceeded our own high expectations, despite the overall challenging and uncertain market environment,” said Daniel Grieder, chief executive officer of Hugo Boss.
“Following our strategy update in June, both brands Boss and Hugo successfully maintained their growth trajectory. We will make 2023 a new record year for Hugo Boss, thus providing a robust foundation for achieving our updated 2025 financial ambition.”
Coinciding with the quarterly update, Hugo Boss once again raised its top- and bottom-line outlook for the current fiscal year. The company now forecasts group sales in fiscal year 2023 to increase between 12 percent and 15 percent to a new record level of between EUR 4.1 billion and EUR 4.2 billion for the twelve months.