The Business of Fashion
Agenda-setting intelligence, analysis and advice for the global fashion community.
Agenda-setting intelligence, analysis and advice for the global fashion community.
The recently rebranded group is forecasting that sales will reach between €3.1 billion and €3.2 billion this year, following a return to pre-pandemic levels in 2021. Revenue for the year ending Dec. 31 reached €2.8 billion, flat on 2019 levels. Net income reached €144 million, up from a €219 loss in 2020.
Despite the momentum, shares fell on Thursday as the war in Ukraine continues to create uncertainty for the apparel sector. Hugo Boss said it closed stores and suspended its e-commerce site in Russia on March 9, joining a long list of brands pushed to stop trading in the country due to logistical challenges. Last year, the Russian and Ukrainian markets combined accounted for 3 percent of Hugo Boss sales, the group said.
Learn more:
The Strategy Behind The Hugo Boss Rebrand
CEO Daniel Grieder breaks down the strategy behind the German menswear giant’s new brand campaign, and why he’s splitting up “Hugo” and “Boss.”
The group’s flagship Prada brand grew more slowly but remained resilient in the face of a sector-wide slowdown, with retail sales up 7 percent.
The guidance was issued as the French group released first-quarter sales that confirmed forecasts for a slowdown. Weak demand in China and poor performance at flagship Gucci are weighing on the group.
Consumers face less, not more, choice if handbag brands can't scale up to compete with LVMH, argues Andrea Felsted.
As the French luxury group attempts to get back on track, investors, former insiders and industry observers say the group needs a far more drastic overhaul than it has planned, reports Bloomberg.