The second quarter has been disappointing for Hugo Boss and expectedly so!
It’s been the same for every retailer over the last few months thanks to the menacing spread of coronavirus that has led to closure of stores all over the world.
Even reopening of stores hasn’t given desired results for many.
While the total sales for the German fashion retailer, for the April to June quarter, fell by 59 per cent to clock €275 million, the retail sales went down by 58 per cent – dismal for a European bigwig like Hugo Boss.
The wholesales revenue too saw a fall of 64 per cent – yet again expected as temporary closures of several wholesale points of sale led to less delivery to wholesale partners.
Now, as reported by Bloomberg, the clothing retailer has in its Q2 report seeked financial help from banks and urged to waive financial covenants under its loan pact. More details on the same are awaited.
But there’s some silver lining! The e-commerce sales have surged by a huge 74 per cent during the same quarter. In fact this quarter has seen the strongest growth in online sales in last 11 quarters.
That’s something positive for the brand ever since the appointment of Oliver Timm as Chief Sales Officer in July.
Apart from a significant growth in e-commerce business, Hugo Boss has also seen an impressive double-digit sales growth in China in June.
