Hugo Boss has record 2023, sees more growth ahead despite tough backdrop | Maqvi News

Hugo Boss’s results report on Thursday showed just how strong the German high-end fashion giant is, with 2023 being a record year for the business and further improvements predicted for FY24.

So let’s look at the numbers released by the owner of the Boss and Hugo brands. Currency-adjusted group sales rose 18% and reported sales grew 15% to that record level of €4.197 billion, topping the €4 billion threshold for the first time. EBIT rose a larger 22% to €410 million. That came as the EBIT margin jumped 60 basis points to 9.8%.

For the year ahead, sales are predicted to grow more slowly (between 3% and 6%) to reach €4.3 billion to €4.45 billion. As with the previous year, EBIT growth should outstrip that with a rise of 5% to 15% to a range between €430 million and €475 million. And the EBIT margin should improve further to between 10% and 10.7%.

That said, the company is also potentially “slightly” delaying its sales target of €5 billion “amid weak consumer sentiment”.

Looking in more detail at the latest year, “growth was once again broad-based in nature, with all brands, regions, and distribution channels contributing with double-digit improvements”. 

The company said the year was marked by strong top- and bottom-line improvements, reflecting the “robust brand momentum of Boss and Hugo, fuelled by the consistent execution of key brand, product, and distribution initiatives as part of the Company’s CLAIM 5 [growth] strategy”.

Both labels boosted their market shares, helping the firm achieve those full-year 2023 sales and earnings numbers, its targets having been revised upwards twice during the year. 

The group’s outperformance in FY23 was spread across all regions, with Asia Pacific seeing the strongest currency-adjusted revenue growth of 32%. But that came as Covid restrictions affected the previous year so the comparisons were easier.

The Americas were also strong, especially given the general slowdown in consumer spending in the region, with sales up by 23% as the revamp of its two brands resonated with consumers. EMEA was weakest but still rose 13%.

Meanwhile the smaller Hugo brand grew 19.8% last year while Boss was up 14.1%. But within Boss, its womenswear jumped 20.5%, compared to 13.5% for menswear.

And the company is clearly determined to see more of the same this year and beyond. 

It said that in 2024, it will “build on the regained strength of Boss and Hugo and further drive brand relevance. Having successfully anchored its position in consumers’ minds in recent years, going forward, [it] will put even more emphasis on fostering engagement with consumers, aiming to retain their loyalty in the long term”.

That means it will “continue to invest into compelling brand-building initiatives and enhance its product offerings to fortify the brands’ 24/7 lifestyle images”. The recent launch of the two label’s SS24 collections, including the launch of Hugo Blue, “thereby marks the next chapter along the company’s CLAIM 5 journey”. 

Part of the strategy will be the further rollout of the latest Boss and Hugo store concepts with more than 200 stores renovated globally so far.

It’s also putting “a particular focus on driving digitalisation and leveraging the power of artificial intelligence along its global sourcing, production, and logistics activities”.