Hugo Boss sees sales growth despite fall on home turf

hugo boss

Hugo Boss has reported rising sales in its first quarter as online, UK and Asia helped offset falling sales in its home country.

The German fashion retailer reported an overall sales rise of five per cent in the three months to March 31, reversing its fortunes from 2015 and 2016 when it issued a string of profit warnings.

Net profits for the period hit €50 million (£43.94 million), up from €48 million (£42.18 million) a year earlier, while online sales skyrocketed 43 per cent.

EBITDA also rose to €99 million (£87 million), ahead of average analyst forecasts for €97 million (£85.24 million).

This jump in profits and ecommerce sales was attributed to the high levels of investment in integrating its website and store estate beginning to bear fruit.

Store sales also jumped seven per cent, accelerating growth from three per cent a year earlier.

After abandoning its strategy to break into the luxury sector and drive womenswear sales, the retailer has been focusing on its core men’s suit market, a strategy which has largely paid off.

Sales across Europe, where Hugo Boss makes 64 per cent of its total revenues, rose three per cent to €650 million (£571.23 million).

Despite sales in Germany dropping five per cent, UK sales jumped 12 per cent.

Elsewhere the fashion house also enjoyed strong sales in China and the Americas, rising 11 per cent and six per cent respectively.

Chief executive Mark Langer has said he is more confident Hugo Boss will hit its targets for the full year.

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