The pandemic cuts 2020’s revenue by a third for Hugo Boss. The German brand believes that the first quarter of 2021 will still be influenced by Covid-19, but that by focusing on a more casual style, the forecast shows “a strong improvement throughout the year”.
Pandemic cuts 2020’s revenue by a third
Hugo Boss closed its 4th quarter of 2020 with revenue down by 29% at constant rates (-26% at current rates). Yet, it managed to reach an EBIT of 13 million euro thanks to cost-cutting strategies.
Overall, the German brand’s sales decreased by 31% (33% at constant rates), for a total turnover of 1.95 billion euro. Net losses equaled 219 million euro, compared to the positive results of 2019: 205 million euro.
That being said, Hugo Boss points out the “takeoff of the online channel”, which grew by 49%. And more: the channel reached the 200-million-mark by for the 1st time ever and the “casual clothing offer of both brands had a much better performance, compared to that of formal attire. The positive forecast for 2021 includes the “strong growth of both revenue and EBIT”, even with the pandemic’s influence on the first quarter.
“We made significant progress with regards to the implementation of our strategic initiatives, especially those focused on the online channel and China”, commented Yves Müller, spokesperson for Hugo Boss’ Board of Directors.
Images taken from hugoboss.com