Hugo Boss sales returned to strong growth in China in June and global online sales jumped 74 percent in the second quarter, even as the German fashion house reported an overall 59-per-cent fall in sales for the period due to lockdowns.
Analysts at Baader Helvea noted the company was particularly exposed as people have been shifting to more casual wear during the coronavirus pandemic, cutting demand for the smart suits for which it is particularly known.
Hugo Boss reported quarterly revenue of €275 million, missing an average analyst forecast for €288 million, while its operating loss of €124 million euros was ahead of consensus for a loss of €133 million.
The company said it had seen a less pronounced fall in sales of casual wear and “athleisure” than in formal wear, with products like T-shirts, polo shirts, trousers and loungewear proving their resilience.
Hugo Boss is currently led by finance chief Yves Mueller after Mark Langer stepped down as CEO. Daniel Grieder, the former CEO of Tommy Hilfiger Global & PVH Europe, is due to take over as CEO on June 1, next year.
Hugo Boss China sales rose by 4 percent in the quarter, including double-digit growth in June, a similar trend to that reported by LVMH , the world’s biggest luxury goods group, which said last week that momentum had especially improved in China.
By contrast, sales fell 59 percent in Europe and 82 percent in the Americas, with unrest and demonstrations in the US in May and June putting more strain on its business.
The company expects a gradual improvement for the second half of this year, but declined to provide a full-year forecast.