The urge to buy returned with the relaxation of Corona and, after H&M and mother of Zara Inditex, also gives more confidence to the German fashion brand Hugo Boss. New CEO Daniel Grieder first dared to forecast 2021 – and now expects a return to profitability. “The recovery in activity has been clearly noticeable in all regions,” said the former boss of Tommy Hilfiger. Revenues in Europe more than doubled in the second quarter and more than quintupled in America, and in Asia they increased by more than 50%. Boss is thus getting closer to the pre-crisis level.
This also restored investor confidence: the Hugo Boss share peaked on Wednesday by more than 6% at 53 euros and was therefore no longer listed at such a high level since September 2019. In October 2020, the securities were still trading at around 19 euros, the pandemic had hit the fashion business hard, the action had fallen sharply. The current news has the potential to surprise, Baader analysts commented.
Grieder is aiming for a 30-35% increase in consolidated sales in 2021, compared to just under two billion euros the previous year. The operating result is expected to reach between 125 and 175 million euros. In 2020, there was a loss of 236 million euros due to branch closures to contain the corona pandemic. In the second quarter, according to preliminary calculations, revenue increased 133% to 629 million euros. The fashion maker, who rose to fame with its men’s suits, estimated profit at 42 million euros after losing 250 million euros a year ago. H&M and Inditex are also on the road to recovery and recorded sales increases in the second quarter.
Last year it looked terrible for Boss: hardly any business meetings or trips, empty offices, no parties or big celebrations – the suits, shirts and dresses of the fashion company of Metzingen on the Swabian Alb were hardly in demand. Hugo Boss made just under 20 percent of sales last year with the sale of classic men’s suits, although the company once grew as an outfitter for office workers. During lockdown and in the home office, customers mainly wore jeans, sweatpants, T-shirts and hoodies – but this is where other brands are more successful than Boss. In addition, Hugo Boss is also lacking in affluent tourists who are still very fond of shopping in stores. Grieder has been leading the group since June, the Swiss who had previously made Hilfiger a big hit.