At the earliest, Hugo Boss expects its business to recover only by the third quarter of current financial year as stores remain closed. Conditions for the brand are particularly tough in Europe and America which account for about 85 per cent sales and which are still hit by store closures and restrained consumption patterns. The brand expects second quarter sales to fall by at least 50 per cent even though all its stores have reopened in China and are gradually reopening elsewhere.

The brand has decided on a wide range of measures to free up additional cash flow of around €600 million. It plans to reduce its investment budget for the current year, which was expected to be around €150 million, by around one third. This includes postponing planned store openings and renovations and placing a temporary freeze on non-essential IT investments. Also, the company will reduce inventory inflow by at least €200 million in fiscal 2020.