It’s not just fashion retailers that are badly off. Clothing manufacturers are also suffering greatly from the corona crisis. The last example: the luxury brand Hugo Boss.
The effects of the Corona crisis pushed fashion group Hugo Boss into the red in the second quarter. The least operating (EBIT) amounts to 250 million euros, as the company announced in Metzingen on Tuesday.
Depreciation of over 125 million euros weighed on development. A year earlier, Hugo Boss had achieved a result of more than 80 million euros. In the end, the loss was less than 186 million euros thanks to a tax credit, after a profit of 52 million euros in the same period last year.
Sales drop 59%
Due to officially ordered store closings, sales plummeted 59 percent to 275 million euros. On the other hand, online activity has experienced strong growth. The Group expects a gradual recovery in the second half of the year.
In the second quarter, for example, Hugo Boss saw a steady improvement in its own retail business every month. This trend continued at the start of the third quarter.