Hugo Boss Q2 FY20 sales down 59% to €275 mn

Hugo Boss, a German luxury fashion house, has reported 59 per cent sales decline to €275 million in its second quarter (Q2) fiscal year 2020 ended on June 30, 2020 compared to sales of €675 million in same period last year. During the quarter, group incurred a net loss of €186 million compared to net income of €52 million in Q2 FY19.

August 10, 2020

Gross profit for Q2 FY20 fell 66 per cent to €150 million (Q2 FY19: €445 million). Operating loss for the quarter were €399 million.

“The second quarter was as challenging as expected. Our relentless focus on executing our measures to protect the financial stability of Hugo Boss has yielded strong cash flow generation in Q2,” Yves Müller, spokesperson of the managing board of Hugo Boss AG, said in a press release.

During the second quarter, sales in Europe were down by 59 per cent €168 million (€408 million). In Germany, where first stores reopened already at the beginning of May, revenue decrease were less pronounced than in the region’s other key markets. On the other hand, Great Britain lagged behind as stores only reopened towards the end of the second quarter.

Sales in Americas dropped 82 per cent to €25 million (€139 million). While the pandemic and the corresponding temporary store closures weighed strongly on the region’s overall performance, unrest and demonstrations in May and June put an additional strain on the Group’s US business.

Asia/Pacific reported a decrease of 37 per cent in sales to €69 million (€110 million) during Q2 FY20. While mainland China successfully continued its gradual recovery, resulting in a 4 per cent increase in the quarter, most of the region’s other markets recorded double-digit decline.

For Boss segment, sales during Q2 FY20 fell 61 per cent to €231 million (€587 million). While for the Hugo segment, sales dropped 50 per cent to €44 million (€88 million).