Advertising. Corona is also changing the fashion world. The home office boom plays a major role here, because suits and ties are rarely used at home on the working day. Comfortable loungewear is required for this. Hugo Boss also confirms this trend. According to the company, the classic suit now only accounts for around a fifth of group sales. The range of goods has been changed accordingly and the company has positioned itself with innovative ideas, fabrics that are particularly comfortable to wear and new combination options. In addition, the topic of sustainability is playing an increasing role. In the case of individual collections, customers are offered complete tracing of the wool used all the way to the farm.
In the third quarter of the current financial year, the MDAX company returned to profitability. The bottom line was the net profit was three million euros. In the previous quarter, Hugo Boss had made significant losses because stationary shops were closed in the Corona lockdown. In this respect, the small profit in the period from July to September represents a significant improvement. Compared to the 56 million euros in the previous year, however, it is a drastic decrease. In the period under review, sales fell by 26 percent compared to the same period in the previous year to EUR 533 million. The management emphasized that local demand in important markets had increased significantly after the very weak previous quarter. But the tourist business is still suffering heavily from international travel restrictions. Significant rays of hope for the group are the sustained dynamism in the online business and the positive development in the Chinese market.
Due to the ongoing uncertainties in the wake of the pandemic, management once again did not commit itself to an outlook for the full year figures. Analysts expect that Corona will dampen Hugo Boss’ business development for some time. Probably the lowest point of the burden was marked in the second quarter. With the opening of the stores, the company’s own stationary sales network has come to the fore again as a key competitive advantage. In addition, the strength of online trading in the crisis is impressive. This distribution channel is particularly preferred by millennials, who are particularly attractive as a target group in view of growing purchasing power. Overall, a brightening of the sales prospects can be expected, so that analysts describe the MDAX stock as a purchase candidate.
The Hugo Boss share lost a lot of its value during the Corona crash in spring and has only partially recovered so far. The still increased implied volatilities favor the conditions of investment alternatives such as DuoRendite reverse convertible bonds. This can offer opportunities for investors who shy away from direct investments in the share, but who generally share a positive assessment of Hugo Boss and who want to implement their strategy with a fixed interest rate, quick partial repayment and a bullet buffer.
3.90 percent p.a. Fixed interest and quick partial repayment after one year
The DekaBank 3.90% HUGO BOSS DuoRendite Reverse Convertible Bond Pro 12/2022 (WKN DK0YK4) pays 3.90 percent interest after one year based on the nominal amount of 1,000 euros. At the same time, the investor receives half of the nominal amount (500.00 euros) back regardless of the market. The remaining nominal amount portion (500.00 euros) will continue to bear interest at 3.90 percent in the following period and will also be repaid in full if the Hugo Boss share is at or above the barrier (70.00 percent of the Start value) closes.
Otherwise, there is a risk of losses on repayment because, instead of the second half of the nominal amount, Hugo Boss shares that have decreased in value are transferred to the investor at 100 percent of the starting value. As with any bond, the issuer risk must also be considered. This means that, especially in the event of DekaBank’s insolvency, there is a risk of losses or even total loss.
The subscription runs from November 23, 2020 to December 11, 2020, subject to an extension or shortening.
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Rating from September 25, 2019, more information at www.deka.de/privatkunden/auslösungen/scope-zertifikate-management-rating
As Head of the Private Banking, Product Management and Product Sales unit of the Deka Group, Hussam Masri is responsible for product development and product management of mutual securities funds, asset management and pension products, certificates and private banking.