Germany-based luxury fashion group Hugo Boss has reported a 1% decline in preliminary currency-adjusted group sales in the second quarter of fiscal year 2024 (Q2 FY24), compared to the prior-year level. Similarly, group currency-adjusted sales also saw a 1% decline, reaching €1,015 million (approximately $1.1 billion), compared to €1,026 million in the second quarter of fiscal year 2023.
Hugo Boss reported a 1% decline in currency-adjusted second-quarter sales of FY24 to €1.015 billion (about $1.1 billion). Sales rose 5% in the Americas but declined in EMEA and Asia-Pacific. Wholesale sales in physical stores grew 5%, while the digital business fell 4%. Operating profit fell to €70 million.
The company's performance varied significantly across different regions. In the Americas, Hugo Boss continued its growth trajectory with a 5 percent increase in sales. However, this was offset by moderate revenue declines in Europe, the Middle East and Africa (EMEA) and Asia-Pacific, which fell by 2 percent and 4 percent respectively in the second quarter, the company said in a press release.
From a channel perspective, the company maintained its momentum in physical wholesale, with sales up 5%. In contrast, revenues from the group’s digital business decreased by 4% compared to the previous year. Physical retail also saw a slight decline in revenue, down 2%, reflecting lower store traffic.
Weaker overall consumer sentiment impacted the performance of the company’s brands. Boss’s menswear line currency-adjusted revenues were 2% below the prior-year level. In contrast, Boss’s womenswear line posted a 2% increase in currency-adjusted sales. The Hugo brand performed well, with currency-adjusted sales up 3%, supported by the successful launch of its new denim-focused brand line, Hugo Blue.
Second-quarter operating profit (EBIT) amounted to a preliminary €70 million, a significant decrease from €121 million in the second quarter of fiscal year 2023. Nevertheless, the company achieved a solid improvement in gross margin, which increased by 50 basis points to 62.9 percent from 62.3 percent in the same period of the previous year.
In addition, Hugo Boss reported a positive development in inventory management, with inventory levels down 7 percent year-on-year on a currency-adjusted basis.
“We are operating in a period of significant global macroeconomic uncertainty, which also impacted our performance in the second quarter,” he said. Daniel Grieder, CEO of Hugo Boss“While the timing of any macroeconomic recovery remains uncertain, our strategy of consistently investing in our strong brands, Boss and Hugo, gives us confidence in our ability to continue to drive above-trend growth and capture greater market share.”
Fibre2Fashion (DP) Press Desk
