Even though Hugo Boss lost ¼ of its revenue, it managed to generate a profit during the third quarter of 2020. There are many positive notes in the retailer’s financial statement. The company claims that sales in China increased by 27%, while online revenue went up 66%. The result comes from the investment made by Hugo Boss: the brand launched its e-commerce in 24 new markets from June to August.
¼ of its revenue
The German group’s revenue in the third quarter was of 533 million euro, or -24% on an annual base (actually down 26% at current rates). Revenue remained slightly inferior to the expectation of analysts cited by Reuters, as the forecast was for 534 million. Yet, the 15 million euro of EBIT was slightly above the consensus.
Hugo Boss stated it plans on focusing on the “strategic drivers” that are growing the most for the 4th quarter: Online channel and China, reads the official note by the Group, which also highlights the high level of uncertainty from the pandemic’s second wave.
“We have made further progress for the recovery of our business – said Yves Müller, spokesperson for Hugo Boss’ BoD -. We want to go back to the previous growth curve”.
Even before the pandemic, Hugo Boss has shifted focus on styles that were sportier and casual. The company claimed that sales of casual clothing decreased by about 5% for Hugo, the brand closest to young consumers.
The casual-sport trend is proven by the fact that Boss will work with Russell Athletic for a capsule collection that will also include footwear and accessories. The products will be for sale starting March 2021.