During the second quarter, sales of German fashion brand Hugo Boss in the US rose two per cent; sales in China jumped 14 per cent. Hugo Boss is known for its smart men’s suits. After a string of profit warnings, Hugo Boss slashed prices in China to bring them closer to European and US levels, making efforts to appeal to younger customers, investing in its website and closing loss-making stores. The strategic realignment had its effect.
Online sales, which had fallen in the first quarter, rose nine per cent after the company took steps to speed up loading time of its website, improve its ranking on search engines and offer more lower-priced garments. Net profit jumped fivefold reflecting year-ago restructuring costs.
The spring/summer 2018 collections for its revamped core brands Boss and Hugo were well received at recent fashion shows, with particularly strong demand for its athleisure and casual wear. Hugo Boss confirmed its outlook for stable sales in 2017 and a low double-digit percentage increase in net income. It expects growth of sales and earnings in 2018 and for sales to outpace the market beginning in 2019.
A recovery in tourism in Europe and stronger Chinese consumption are expected to lead a rebound in the luxury sector this year.
