Of course, the +129% performance is compared to the 2nd quarter of 2020 (during the first wave of Covid-19, which can make it seem less significant. Yet, a -4% performance compared to the same period of 2019 seems to indicate that the path selected is the right one. Hugo Boss countered the opinions that see the brand as weak and shared results that were particularly satisfying. Optimism at Metzingen pushed the organization to even provide forecasts for the year, which hadn’t happened since before the pandemic hit. The brand estimated a revenue increment of between 30% and 35%. “Contribution is expected from all regions”.
The recovery is here
Hugo Boss proved its recovering phase by beating market forecasts. Preliminary results for the 2nd quarter of 2021 show a consolidated revenue of 629 million euro. This means 129% more than the 2nd quarter of 2020 and just 4% below that of 2019’s 2nd quarter. Sales in China have grown by 33% over 2019’s same period, while profitability has improved thanks to the brand’s “continuous and rigorous cost controls”. EBIT was equal to 42 million euro for the April-June 2021 period, while the 2nd quarter of 2020 showed a loss of 250 million euro. “The non-recurrence of negative inventory valuation effects and impairment charges recorded in the prior-year quarter also contributed to this development”, said the brand.
No more rumors
These results could also put a stop to market rumors. Hugo Boss, allegedly, while trying to cope with revenue drops, was placed in the shopping cart of luxury groups. The new CEO, Daniel Grieder, has taken over the brand with much ambition, which for now seems to be within reach for the brand.
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