Hugo Boss ups guidance after highest ever quarterly sales

Hugo Boss has upped its full-year guidance following a period of “significant” growth and “strong momentum” in its third quarter of trading, where sales figures broke historic records for the group. 

Over the period, group sales rose by 18% to €933m (£812m), up from €755m (£657m) the prior year, representing the highest quarterly sales in the history of the company. 

Operating profit (EBIT) rose by 8% to €92m (£80m), driven by a strong top-line performance which “more than compensated” for a moderate decline in gross margin as well as an increase in selling and distribution expenses.

All channels were said to contribute to the strong Q3 performance, as reflected by double-digit sales improvements across all consumer touchpoints. 

Digi­tal channels growth was up by 20% against 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. 

However, momentum in brick-and-mortar retail also remained strong, with revenues up 18% compared to the prior year. On a three-year-stack basis, growth in brick-and-mortar retail even accelerated to 25%, with momentum strengthening across all three regions. 

In brick-and-mortar wholesale, cur­rency-adjusted sales were up 18% year-on-year. While this reportedly reflected “ongoing robust demand” from wholesale partners, delivery shift effects limited growth to some extent.

According to the group, its overall strong Q3 performance was “once more fueled” by the successful execution of several brand and product initiatives as part of its ‘CLAIM 5’ growth strategy. 

In light of the strong financial performance, the fashion giant has raised its outlook for the current year. FY22 sales are now expected to increase between 25% and 30% to a new record level of €3.5bn (£3bn) to €3.6bn (£3.1bn). They were previously expected to increase be­tween 20% and 25% to €3.3bn (£2.9bn) to €3.5bn (£3bn). 

At the same time, EBIT in 2022 is now expected to increase between 35% and 45% to between €310m (£270m) and €330m (£287m), up from a previous guidance of an increase between 25% to 35% to €285m (£248m) and €310m (£270m).

Daniel Grieder, CEO at Hugo Boss, said: “We look back on an extremely successful quarter, in which our broad-based growth contin­ued seamlessly. Building on our strong brand momentum, we look forward to the important final quarter with confidence. 

“Thanks to the relentless execution of our ‘CLAIM 5’ strategy, we are well on track to make 2022 not only a record year for Hugo Boss, but also a major milestone along our 2025 targets.”