Huguro Boss expects rebound in second-quarter sales

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Huguro Boss expects rebound in second-quarter sales

BERLIN - German fashion house Hugo Boss said it expected a rebound in its business for the second half of the year as sales returned to pre-pandemic levels in Britain and China in the second quarter.

The former Tommy Hilfiger boss is well prepared to further drive our business recovery into the second half of the year, said new chief executive Daniel Grieder, whom will explain his strategy later on Wednesday.

If shares were up on Thursday at 0738 GMT, Hugo Boss shares were up 1 %.

The company known for its smart men suits said its core Boss Brand saw sales adversity 5%, while Hugo reported sales of 2% - 10%.

While sales of formal styles continued to accelerate, Hugo Boss said it had also seen a recovery in sales of casual wear as the working-from-home trend boosts more relaxed dressing.

Hugo Boss, which had already reported preliminary second-quarter results last month, said sales were up 7% in mainland China and 33% in the United Kingdom.

The recovery in China came despite calls for boycott of Western brands launched in late March over Western accusations of forced labour in Xinjiang when at least three Chinese celebrities said they were dropping Hugo Boss in March.

Meanwhile, sales in Americas were down 5% below the level of 2019 recorded in Europe and were just 4% below those in Europe. Around 20% of the company's global online store network was still closed during the second quarter.

The company reiterated that it expects currency-adjusted group sales in fiscal year 2021 to increase by between 30% and 35%.