Hugo Boss reports 59% total sales drop in Q2

Hugo Boss has seen its total sales drop by 59% to €275 million in the second quarter of 2020, as government imposed store closures took a toll on the business.

With approximately 50% of its global store network closed on average during the course of the second quarter, the business was significantly impacted by the pandemic.

This was particularly evident in Europe and the Americas – by far the Company’s largest regions. In both regions, the vast majority of the Company’s stores and shop-in-shops were closed from mid-March until the end of May, thus significantly weighing on sales and earnings development.

While own retail sales decreased 58%, wholesale revenues fell 64%.

The premium retailer reported an acceleration in momentum for online business however, with sales up 74% in Q2.

The period from April to June marks the strongest quarterly performance out of eleven consecutive quarters with significant double-digit online sales growth for Hugo Boss.

In the wake of COVID-19, the company announced comprehensive measures with a total volume of around €600 million to secure its cash flow. Over the course of the second quarter, Hugo Boss has made significant progress in implementing these measures by focusing on reducing operating expenses, postponing all non-essential investments, and substantially reducing inventory inflow.

Yves Müller, Spokesperson of the Managing Board of Hugo Boss, said: "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 in Q2.

"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."