Hugo Boss records 74% rise in online sales amid temporary store closures

Hugo Boss has reported a 74% increase in online sales during Q2 of 2020, with the fashion group heavily reliant on this channel due to Covid-19 lockdown restrictions.

As a result, the three months from April to June 2020 represented the strongest quarter of growth for its eCommerce business in 11 consecutive quarters. Substantial double-digit growth online was observed in all three regions Hugo Boss operates: Europe, America, and Asia-Pacific.

The group said around 50% of its stores worldwide were closed during this period due to the pandemic, which had a “noticeable negative impact” on its sales. This was especially the case in Europe and America, where the majority of its stores were shut from mid-March to the end of May. In Europe, sales fell by 59% and in America by 82%.

This led to overall sales falling 59% year-on-year, declining by 58% in retail and 64% in its wholesale business.

In China, which eased lockdown measures earlier than many other countries, there was a strong recovery, including a double-digit sales increase in June.

Yves Müller, spokesman for the board of Hugo Boss commented: “As expected, the second quarter was very challenging. We have fully focused on the implementation of our measures to ensure the financial stability of Hugo Boss and thus achieved a strong cash flow.

“It gives us confidence that our strategic growth drivers, China and online, have quickly returned to their old dynamic or have grown even faster. We will now focus all of our efforts on the further upswing of our global business in order to return to sales and earnings growth as quickly as possible.”

Last month the luxury brand appointed Oliver Timm as chief sales officer (CSO) in a move that will see it expand its digital capacities.

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