// Hugo Boss sales drop in Q2 as temporary store closures affect trading
// Retail sales drop 58% and wholesale revenues drop 64%
Hugo Boss has seen its total sales drop by 59 per cent to €275 million (£248 million) in the second quarter of 2020 as store closures took a toll on trading.
Retail sales decreased 58 per cent and wholesale revenues fell 64 per cent, as large-scale temporary closures of wholesale points of sale resulted in less deliveries to wholesale partners.
Sales in Europe declined by 59 per cent as temporary store closures and sharp declines in tourism weighed heavily on the German fashion retailer.
- Hugo Boss hires new chief sales officer as CEO steps aside
- Mike Ashley’s Frasers Group stake in Hugo Boss doubles to 10.1%
At least 50 per cent of Hugo Boss’ global store network closed on average during the course of the second quarter due to the coronavirus pandemic.
The vast majority of the retailer’s stores and concessions were closed from mid-March and in the UK, they reopened on June 15.
However, Hugo Boss’ online business saw a growth of 74 per cent during the period as customers shifted online.
“The second quarter was as challenging as expected. Our relentless focus on executing our measures to protect the financial stability of Hugo Boss has yielded strong cash flow generation,” Hugo Boss chief financial officer Yves Müller said.
“It is equally encouraging to see that the momentum along our strategic growth drivers China and online has either returned quickly or further accelerated.
“Now, we will put all our effort behind the further recovery of our operations in order to return to top- and bottom-line growth as soon as possible.”