Hugo Boss foresees recovery from corona easing | Financial

The company is already seeing sales of its casual wear lines grow again, but more business-like clothing, such as suits, is still lagging behind. Now that many people still (partly) work from home, they dress less formally.

In the first quarter, the company’s turnover was still 10 percent lower than a year earlier, but sales in China rose sharply. The Asian country is an important market for many fashion brands and Hugo Boss is no exception.

Sales in China nearly doubled year-on-year, but the corona outbreak in that country had a major impact in the first quarter of last year. Compared to the first three months of 2019, Hugo Boss increased sales in China by almost a third.

The German company was silent about the impact of a riot over Xinjiang cotton in China. Several Western companies faced public anger at the beginning of this year for speaking out against the use of cotton from the region where China would force the minority population to oppress and forcibly employ the Uyghurs. A number of well-known Chinese then announced that they were canceling sponsorship deals with Hugo Boss and there were also internet users who called for a boycott.

For the current quarter, Hugo Boss is counting on new sales growth and hopefully an operating profit as well. The company did not want to give a precise forecast yet.


Related Articles

Back to top button