Hugo Boss raises 2021 outlook after strong third quarter

German fashion retailer Hugo Boss on Thursday raised its outlook for the current year after third-quarter earnings rebounded above pre-pandemic levels on the back of strong demand in Europe and the Americas.

The group now expects sales to grow by about 40% in 2021 on a currency-adjusted level, up from a previous target growth range of 30-35%. Operating profit (EBIT) is now seen at 175 million to 200 million euros ($203-232 million), compared with a previous forecast for 125 million to 175 million euros.

While noting a strong business recovery in Europe and the Americas, "renewed COVID-19 related restrictions, including temporary store closures, weighed on consumer sentiment in various key markets" in the Asia/Pacific region, it said.

Third-quarter sales and EBIT stood at 755 million euros and 85 million, respectively, which represents a rise not only compared with the past year but also with regard to 2019, before the COVID-19 pandemic hit the sector, Hugo Boss said.

Frankfurt-listed shares in the company, which is expected to publish full third-quarter results on Nov. 4, rose 2.6% on the news.