Hugo Boss Q2 , 2017 Results

Hugo Boss AG, often styled as BOSS, is a German luxury fashion house. It was founded in 1924 by Hugo Boss and is headquartered in Metzingen, Germany. Originally focusing on uniforms, it was a supplier for Nazi Party organizations both before and during World War II. After the war and the founder’s death in 1948, Hugo Boss started to turn its focus from uniforms to men’s suits. The company went public in 1985 and introduced a fragrance line that same year, added mens and womenswear diffusion lines in 1997, a full women’s collection in 2000 as well as children’s clothing in 2008/2009, and has since evolved into a major global fashion house. Denim is also one of the important products of Hugo Boss and hence we analyse its latest results to check out the direction in which it is moving. It is , still, primarily , a men’s label with over 85% sale in men’s segment.

Sales Development By Segment

In the competitive world of fashion industry with different brands into consideration ,HUGO BOSS sales value for the Q2’17 is Euro 636 Million out of which Euro 372 million accounting 59% of total sales  alone contributed by Europe Region followed by  Americas and Asia /Pacific which contributed Euro 148 million and Euro 98 million respectively . Though Europe is the biggest contributor however this region suffered a decline of 2% in its sales if we compare this quarter against the 2nd quarter of 2016 . The rest regions have performed comparatively very well specially the Asia/Pacific and License .

Particulars

Sales(Euro million) Q2|2017

% Change

Europe

372

-2

Americas

148

5

Asia/Pacific

98

11

Licenses

18

27

Total

636

2

Sales Analysis Of  Hugo Boss For The  Second Quarter, 2017

Sales Analysis Of  Hugo Boss For The  Second Quarter, 2017

Sales Analysis Of  Hugo Boss For The  Second Quarter, 2017

 Sales Development By Channels

Out of various channels of sales , Retail channel is leading in sales with Euro 436 million for second quarter 2017 followed by Wholesale channel which contributed Euro 182 million. The least contribution was of Licenses channel which contributed only Euro 18 million. The percentage change in retail channel was of 5%,  Similarly the license channel was of 27%. However there is a negative change in wholesale segment by 6% .

Particulars

Sales(Euro million) Q2|2017

% Change

Retail

436

5

Wholesale

182

-6

Licenses

18

27

Total

636

2

Sales Analysis Of  Hugo Boss For The  Second Quarter, 2017

Sales Analysis Of  Hugo Boss For The  Second Quarter, 2017

Sales Analysis Of  Hugo Boss For The  Second Quarter, 2017

Sales By Gender

Out of the total sales of Euro 636 million , Men’s wear is  leading in sales by Euro 568 million, whereas Women’s wear contributes Euro 68 million. The percentage change for Men’s wear is 3% and Women’s wear shows negative change by –3 %.

Particulars

Sales(Euro million) Q2|2017

% Change

Men’s wear

568

3

Women’s wear

68

-3

Total

636

2

Sales Analysis Of  Hugo Boss For The  Second Quarter, 2017

Sales Analysis Of  Hugo Boss For The  Second Quarter, 2017

Sales Analysis Of  Hugo Boss For The  Second Quarter, 2017

Showing Sales by Brands

Boss is a leading brand in sales by Euro 545 million whereas , Hugo contributed Euro 91 million. The percentage change in sales for Boss and Hugo was 2 % and 6% respectively which signifies a better growth of HUGO against BOSS.

Particulars

Sales(Euro million) Q2|2017

% Change

BOSS

545

2

HUGO

91

6

Total

636

2

Sales Analysis Of  Hugo Boss For The  Second Quarter, 2017

Sales Analysis Of  Hugo Boss For The  Second Quarter, 2017

Sales Analysis Of  Hugo Boss For The  Second Quarter, 2017

Earning Development

The analysis for earning development , shows that Europe is leading with Euro 106 million, followed by Americas Euro 36 million , Asia/Pacific with Euro 23 million respectively. The least earning region was  licenses with Euro 13 million only. The percentage change in earning for Europe is in negative which is –6% . Earnings have shown a fair growth in Americas , Asia/ Pacific , licenses and it was 6%, 30%, 14% respectively.

The biggest gainer is Asia Pacific region with a growth rate of 30% and the total earning for the same is Euro 23 million . The Asia Pacific region has become new attraction point for every international retailer and specifically India .

Particulars

Earning development (Euro million) Q2|2017

% Change

Europe

106

-6

Americas

36

6

Asisa/Pacific

23

30

Licenses

13

14

 

Sales Analysis Of  Hugo Boss For The  Second Quarter, 2017

Sales Analysis Of  Hugo Boss For The  Second Quarter, 2017

Asia Pacific shows the most growth in the charts of Hugo Boss . The region includes countries like China, India and others, An annual report by AT Kearney detailing emerging retail markets recently put India at the top of the list, beating out China for the first time. India’s expanding economy, booming consumption rates and growing middle class all make it an especially attractive prospect for retailers, the report explained. As retailers struggle in the U.S.and UK , a new report suggests India could be the next bright spot for the industry A.T. Kearney’s annual look   here .

Sales Analysis Of  Hugo Boss For The  Second Quarter, 2017

 Stores Information

Out of 442 stores at the beginning of Dec 31, 2016 , openings and takeovers were 10 and the number of closures were 14 . At the end of June , The total number stores stood at 438 .

Particulars

No of Stores

Stores at December 31, 2016

442

Openings & takeovers

10

closings

-14

Stores at June 30,2017

438

Sales Analysis Of  Hugo Boss For The  Second Quarter, 2017


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