Hugo Boss focuses on 'more profitable' casual wear during Covid-19 crisis 

Yves Mueller, acting chief executive, said casualwear is more profitable than the company’s core business of selling smart men’s suits. 

Hugo Boss reported excellent business in China in October. File picture. 

Fashion house and retailer Hugo Boss said it was focused on driving a recovery of its business online and in China and tapping into the trend for more casual fashion that has been accelerated by the coronavirus pandemic.

“We have a lot more to offer than the classical suit,” Yves Mueller, acting chief executive, told journalists, saying that customers were increasingly mixing formal and casual items, such as wearing a suit jacket with a T-shirt and sneakers.

After slumping to a loss in the second quarter, Hugo Boss swung back to a third-quarter operating profit of €15m. 

Mr Mueller said casualwear is more profitable than the company’s core business of selling smart men’s suits.

Online sales jumped 66% in the third quarter, as Hugo Boss launched e-commerce in 24 more markets, with another 12 countries to be added in 2021. 

Mr Mueller said the company was on track to meet its target for €400m of online sales by 2024.

He declined to give a full-year outlook as parts of Europe close stores again during new lockdowns to stem the spread of the coronavirus. However, he was upbeat about e-commerce and China, where he said business was excellent in October.

Third-quarter sales in mainland China rose 27% from a year earlier. China currently accounts for about 7% of group sales, less than many rivals.

“That is why we want to go full speed ahead,” Mr Mueller said.

Hugo Boss showcased sportier and younger styles with a live-streamed show during Milan fashion week in September.

• Reuters