Hugo Boss managed to restrict sales decline to 10 per cent in the first quarter of the current financial year. The group also recorded positive EBIT of €1 million during the quarter. It was helped by the ongoing strong dynamic in mainland China which also led to its online business surging by 72 per cent. However, retail sales declined 14 per cent in Q1, although wholesale rose 1 per cent (both currency-adjusted). The wholesale channel benefited from a “robust” order intake for the SS21 collections of Boss and Hugo. While Boss and Hugo posted currency-adjusted sales declines of 8 per cent and 6 percent, respectively, their casualwear sales returned to mid-single digit growth.
Currency-adjusted sales in Europe decreased 17 per cent to €299 million. The company closed almost half of its shops during the first three months of the year. Weakness in several key markets, including the UK, France and Germany, added to its weak performance.
Sequential improvements in important US business, as well as a robust performance in wholesale, boosted sales during the quarter. American currency-adjusted sales declined by only 11 per cent at €80 million as consumer sentiment rebounded. The robust demand for its product in China helped drive sales in Asia-Pacific by 39 per cent to €101 million.