Hugo Boss delivers record sales but warns impact of subdued consumer sentiment

Hugo Boss has reported a 3% rise in sales to a record €4.3 billion (£3.6 billion) in 2024, but expects revenue to be flat this year amid subdued consumer sentiment.

Growth was particularly robust in the final quarter of 2024, supported by a "successful" holiday season for Hugo Boss.

The company also benefitted from the execution of its CLAIM 5 strategy and improved brand relevance of BOSS and HUGO.

Currency-adjusted revenues for both BOSS Menswear and BOSS Womenswear lifted 3%, while sales for HUGO increased 5% during the year, supported by the launch of HUGO Blue.

Accelerating momentum in the Americas and EMEA was impacted by subdued consumer demand in China last year.

Currency-adjusted revenues in brick-and-mortar retail remained on par with the prior-year level. An increase in sales per transaction was offset by a decline in store traffic. However, revenues returned to growth in the fourth quarter.

Meanwhile, the company's digital business continued its growth trajectory with currency-adjusted sales up 6% in 2024, driven by an 11% revenue increase in Q4. Robust revenue improvements in brick-and-mortar wholesale also resulted in an 8% increase.

EBITDA increased 3% to €775 million (£651 million), resulting in an 18% rise in EBITDA margin against 17.9% in 2023.

Looking ahead, as macroeconomic and geopolitical volatility remains elevated in 2025, the company's annual performance is expected to be impacted by subdued consumer sentiment.

Sales are projected to remain broadly in line with prior year, ranging between €4.2-4.4 billion (£3.5-3.6 billion) in 2025.

Hugo Boss will also maintain a balanced approach between strategic investments and cost efficiency to ensure profitability increase.

Daniel Grieder, Chief Executive Officer of Hugo Boss, said: "Since the launch of CLAIM 5 in 2021, we have made significant progress on our strategic journey and delivered above-trend growth. In 2024, we continued our growth trajectory. This success underscores the increased relevance of BOSS and HUGO and highlights the great potential of our two brands.

"Yet, the macroeconomic challenges intensified in 2024 and led to a sharp industry slowdown. We therefore focused even more on customer centricity and on our most impactful initiatives.

"As we enter the final year of CLAIM 5, our focus on delivering profitability improvements is sharper than ever. The solid foundation we have built over the past years fills us with confidence in our ability to succeed. At the same time, macroeconomic and geopolitical volatility remains high, weighing on consumer sentiment and impacting our performance since the start of the year. Against this backdrop, we stay focused and vigilant, closely monitoring global market developments.

"Likewise, we remain committed to leveraging the strength of our brands, while aligning strategic investments with efficient cost management. This balanced approach will help us drive profitability and create shareholder value in 2025 and beyond."