Hugo Boss lifts 2023 outlook as brand revamp pays off

German fashion house Hugo Boss on 2 August raised its full-year outlook after reporting a double-digit jump in second-quarter sales, driven by market share gains thanks to its recent brand revamp and marketing push.

The company expects its annual sales to grow between 12% and 15% and reach €4.1 billion to €4.2 billion ($4.5-4.6 billion), compared with its previous forecast for about 10% growth to €4 billion.

It expects 2023 operating profit to grow between 20% and 25% to a level of €400 million to €420 million, versus its prior range of 10% to 20%.

Hugo Boss’s 2022 brand revamp has helped the luxury group stay resilient in the slowing U.S. and Europe, Middle East and Africa (EMEA) markets while boosting sales in Asia, despite a sector-wide sluggish recovery in China.

Quarterly sales rose 20% to €1.03 billion on a currency-adjusted basis, from €878 million a year earlier. This was aided by worldwide market share gains for both its brands, Boss and Hugo, especially among younger consumers, the group said.

The sales were broadly in line with analysts’ estimate of €1 billion euros in a poll provided by the company. Shares of Hugo Boss were seen up 2.1% in Lang & Schwarz pre-market indications.