HUGO BOSS expects gradual improvement for the second half of 2020. As the further development of the pandemic in many key markets remains uncertain, HUGO BOSS is not able to provide a reliable sales and earnings forecast for full-year 2020. Nevertheless, the Company remains optimistic that the global retail environment will continue to gradually improve. This should also positively impact the Group’s sales and earnings development in the second half of the year and allow HUGO BOSS to make further progress along with its overall recovery, which has started at the beginning of May. Retail sales trends during the second quarter have shown a sequential improvement month by month. This positive trend has also continued so far in Q3, as HUGO BOSS has recorded further improvements in its global retail operations during the month of July.
HUGO BOSS successfully executes its measures to protect cash flow
- Temporary store closures weigh on Q2 financial performance
- Momentum in online business strongly accelerates – sales up 74% in Q2
- Sales in mainland China return to double-digit growth in June
- Strong free cash flow generation of EUR 39 million in the second quarter
- Operating result (EBIT), excluding non-cash impairment charges1, amounts to minus EUR 124 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,” says Yves Müller, Spokesperson of the Managing Board of HUGO BOSS AG. “It is equally encouraging to see that the momentum along our strategic growth drivers China and Online has either returned quickly or further accelerated. Now, we will put all our effort behind the further recovery of our operations in order to return to top- and bottom-line growth as soon as possible.”
In the second quarter of fiscal year 2020, both the retail sector and the apparel industry were severely impacted by the global spread of COVID-19. Temporary lockdowns resulting in widespread store closures, a sharp deterioration in consumer sentiment, as well as international travel restrictions weighed on global industry sales.