Following today’s release of Hugo Boss’ figures for Q1 FY2023,: Chloe Collins, head of spparel at GlobalData, a leading data and analytics company, offers her view: “Hugo Boss continues to defy the odds in a market pressured by inflation, with Q1 FY2023 sales rising 25.4% to €968m. On a three-year basis, revenue has grown 44%, as its rebrand has successfully helped demand for its products soar and increased its relevance among younger shoppers. Despite rising costs, which have led many other fashion players to experience squeezed profits, Hugo Boss managed to see its operating profit rise 63% during the quarter. Hugo Boss still expects the rest of the year to be more challenging as the true impact of tight consumer budgets sets in, however, thanks to its strong start, it has raised its growth guidance for the full year from mid-single-digits to c10%, which will undoubtedly allow it to win market share in 2023. It also aims to meet its target of reaching revenue of $4bn much earlier than initially expected.
“Its success in Q1 was extremely well-rounded, with strong performances across all regions and channels, as well as in both of its brands. EMEA proved resilient despite high inflation rates impacting consumer confidence, with currency-adjusted revenue increasing 21% and its home market, Germany, in particular standing strong with 28% growth. Americas and Asia Pacific, where inflation is less severe, achieved even higher growths of 38% and 31% respectively. In terms of channels, digital sales (including those through wholesale partners) rose 22%, with a significant improvement within its own offering thanks in part to the relaunch of its mobile app, which includes features such as scan & shop and find in store, elevating its omnichannel proposition, as well as direct links to items showcased on its Instagram. Offline retail and wholesale sales both increased 26%, though these will partly be boosted by some tough Omicron comparatives at the start of last year.
“The tables have turned since FY2022 for womenswear and menswear performance within its BOSS brand, with womenswear achieving slightly stronger growth in Q1 (29% versus 24% for menswear), showing that increasing its fashion credentials and working with heavyweight ambassadors such as Gigi Hadid and Naomi Campbell is paying off and helping to grow awareness of its offer among females. The smaller HUGO brand experienced 33.6% growth, boosted by its surging appeal among Gen Z. Events such as its fashion show in Miami and presence at Metaverse Fashion Week in March should have helped enhance its relevance among young
