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Hugo Boss returned to growth in China in June, but repots Q2 loss

By
Reuters API
Published
Aug 4, 2020
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Upscale German fashion house Hugo Boss said on Tuesday it had returned to strong growth in China in June and online sales jumped 74% in the second quarter even as it reported an overall 59% fall in sales for the period due to lockdowns.


Hugo Boss



The company said sales rose 4% in the quarter in mainland China, including double-digit growth in June, with the online business more than doubling in the quarter in the country.

In an encouraging sign for the sector, the world’s biggest luxury goods group, said last week that sales momentum picked up in June and had especially improved in China.

Hugo Boss reported quarterly revenue of €275 million (£247.52 million) and an operating loss of €124 million, broadly in line with average analyst forecasts for €288 million and a loss of €133 million respectively.

Sales fell 59% in Europe and 82% in the Americas due to temporary store closures and sharp declines in tourism. The company said unrest and demonstrations in the United States in May and June put more strain on its business in those months.

Hugo Boss said it expects a gradual improvement for the second half of 2020, but declined to provide a full-year forecast due to market uncertainty.

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