German fashion house Hugo Boss reported a third-quarter (Q3) 2020 net profit of three million euros (3.5 million U.S. dollars) after a net loss of 186 million euros in Q2, the company said on Tuesday.
Despite a 26 percent decline in group sales to 533 million euros in Q3, Hugo Boss “returned to positive territory” with an operating profit (earnings before interest and taxes, EBIT) of 15 million euros, according to the company.
“We made further progress in the recovery of our business,” with “great contribution” coming from e-commerce and business development in China, said Yves Mueller, spokesperson of the Managing Board of Hugo Boss in a statement.
Hugo Boss continued its gradual recovery in all of its business regions in Q3, but the “pace of recovery was most pronounced” in the Asia-Pacific region, where currency-adjusted sales declined by 14 percent only, the company noted.
China, a strategically important market for Hugo Boss, “stood out positively again,” the company noted. With currency-adjusted revenues up 27 percent, China “gained further momentum” in Q3, continuing the recovery that already started back in March.
At the same time, sales in Europe were 21 percent below the previous year’s level. While the region recorded a “solid rebound of local demand” in key markets, such as the United Kingdom and France, the restraint in tourism continued to weigh on the company’s overall business recovery.
In the United States, sales plummeted by 41 percent as the COVID-19 pandemic continued to negatively impact the company’s business, according to Hugo Boss.
However, the online business was able to maintain its “strong momentum,” with sales up 66 percent. For Hugo Boss, Q3 2020 marked the twelfth consecutive quarter with a significant double-digit growth of online sales.
“Further driving the global recovery of our business will remain a key priority for us as we approach year-end,” stressed Mueller. (1 euro = 1.17 U.S. dollars)