Fashion group Hugo Boss raised its sales and profit outlook on Wednesday following its strong second-quarter financial results. The company was able to overcome sluggish industry-wide demand in the U.S. while boosting its sales in Asia.
The company’s revenue surged by 20% in Q2 to 1.03 billion euros ($1.13 billion), compared to 878 million the previous year. While U.S. and European sales remained stable despite market pressures, Hugo Boss did particularly well in China, with the German fashion house seeing a 56% sales increase from the previous year. The company’s performance in the Americas and EMEA markets also picked up amid rising tourism.
Annual sales are now expected to rise by 12% to 15%. resulting in total revenue of 4.1 billion to 4.2 billion euros. Previously, a 10% rise in revenue to 4 billion euros was forecasted.
Hugo Boss now expects its 2023 operating profit to grow between 20% to 25% to a level of about 400 million euros to 420 million euros. Its previous profit forecast fell in the region of 370 million to 400 million euros.
Shares in the company dropped by 1% on Wednesday after rising 32% for the year to date.