In the fourth quarter, Hugo Boss currency-adjusted group sales grew by 13 percent or 10 percent reported to 1,177 million euros, while EBIT increased 17 percent to 121 million euros on a preliminary basis.
For the fiscal year 2023, the company’s currency-adjusted sales were up 18 percent or 15 percent reported to 4,197 million euros and EBIT increased 22 percent to 410 million euros on a preliminary basis.
Commenting on the strong preliminary results, Daniel Grieder, chief executive officer of Hugo Boss said: “The double-digit top- and bottom line improvements in the important final quarter are all the more remarkable considering the current challenging global market environment.”
Highlights of Hugo Boss performance in Q4
In the three-month period, the company said in a statement, currency-adjusted sales for Boss menswear were up 13 percent year over year, while revenues for Boss womenswear and for Hugo expanded by 14 percent each.
From a geographical perspective, all regions contributed to revenue growth in the final quarter of 2023. Currency-adjusted revenues in EMEA rose 7 percent above the prior-year level, reflecting solid sales increases in key markets such as Germany and France as well as double-digit improvements in emerging markets.
In the Americas, sales increased 18 percent currency-adjusted, supported by ongoing double-digit growth in the important U.S. market.
Revenues in Asia/Pacific increased by 33 percent currency-adjusted, reflecting strong double-digit sales improvements in both China and South East Asia & Pacific.
The group’s digital business continued its double-digit growth trajectory from previous quarters, with currency-adjusted revenue growth of 26 percent. Brick-and-mortar currency-adjusted revenues were up 12 percent compared to the prior year, while in brick-and-mortar wholesale, currency-adjusted revenues were up 5 percent, with all three regions contributing to growth. Sales in the licence business increased by 15 percent, led by double-digit growth in the important fragrance business.
Review of Hugo Boss 2023 results
Hugo Boss added that the company’s full year performance was driven by the rigorous execution of its ‘Claim 5’ strategy.
In doing so, the company gained further market shares and exceeded its initial 2025 sales target of 4 billion euros two years ahead of plan.The group expects the operating profit (EBIT) to increase by 22 percent to an amount of 410 million for the full year 2023. The fourth quarter is anticipated to contribute an EBIT of 121 million euros, up 17 percent.
As a result, the EBIT margin for the full year is expected to increase to a level of 9.8 percent.
By 2025, Hugo Boss aims at generating revenues of 5 billion euros and an EBIT of at least 600 million euros, representing an EBIT margin of at least 12 percent.
