Quarterly update: Hugo Boss is pushing the digital channel. Ralph Lauren’s supply chain struggles. The brands though share the optimism feeling that the future is bright, seen from the updated forecasts of both enterprises for the current period. Hugo Boss’s CEO, Daniel Grieder, wants to position his brand among the 100 best global brands, which is why he is working on products, the team, and the brand’s strategies. Ralph Lauren, on the other hand, is paying the price of an unbalanced supply chain all abroad, specifically South-East Asia.
Boss pushes the digital channel
Mr. Grieder is trying to modernize the Boss brand (a look on the left) and wants to increment online sales. As reported by Reuters, the company has begun new digital operations inside its Metzingen and Porto locations. The goal is to relaunch Boss’ website at the start of 2022. The German group surpassed revenue and profit estimates prepared by analysts during the 3rd quarter, even beating the results of 2019. Sales reached 755 million euro: +40% on the same period of 2020% and +7% on the same period of 2019. Margins were also higher than the previous year. Hugo Boss raised estimates for the entire fiscal year from 20-35% to +40% at constant rates.
Ralph Lauren’s supply chain
Ralph Lauren has a great 3rd quarter (closed on September 25th). Net revenue amounted to 1.5 billion USD (+26%) thanks to the North American region and Europe. The company, which estimated +25%720% for the entire year now expects the final results to be between 34% and 36% higher than the previous. Ralph Lauren (on the right a showcase of the brand’s footwear) also mentioned that the price increment of raw materials and shipping costs will impact the next few quarters. The US-based brand is making strives to guarantee stores will be full for the upcoming holiday season. The wide majority of Ralph Lauren’s products come from abroad: 40% from China and Vietnam, according to Reuters. This makes the company more exposed than others, when it comes to supply chain interruptions and other difficulties.