Hugo Boss plans to strike gold in 2024 by building on Claim 5 strategy

Hugo Boss revealed sky-scraping expectations of £3.8 billion (€4.45 billion) in sales for FY24 after recommitting to its successful Claim 5 strategy.

Back in January, Hugo Boss revealed that 2023 was "another remarkable success". The company hit record-breaking sales of £3.5 billion (€4.2 billion).

Now, the company plans to further execute its Claim 5 strategy after laying its foundations for the past two years. This marketing initiative will see the company invest in enhancing 24/7 lifestyle images. The recent launch of the BOSS and HUGO SS24 collections, including the first-time drop of HUGO Blue, marks the continuation of the strategy.

Daniel Grieder, CEO of Hugo Boss, said: "2023 was another year of remarkable success for Hugo Boss. The second full year of executing growth strategy was characterised by strong achievements across all business areas and has accelerated the momentum of our BOSS and HUGO brands. These successes prove that with Claim 5, we have the right strategy in place to unlock the full potential of our brands."

In order to ensure continuity and long-term business success, Grieder was reappointed Chairman of the Managing Board and CEO of Hugo Boss until 31 December 2028. At the same time, Oliver Timm was appointed Deputy CEO.

Financial expectations

Sales are expected to grow between 3-6% to around £3.6-3.8 billion (€4.3-4.45 billion). Meanwhile, EBIT is expected to increase by 5-15% to around £360-405 million (€430 -475 million).

Looking further ahead, the company's sales ambition of £4.2 billion (€5 billion) might be 'slightly delayed' amid weak consumer sentiment. However, Hugo Boss reaffirmed its ambition of improving its EBIT margin to a level of at least 12% by 2025.

Grieder concluded: "With Claim 5, we have laid an important foundation for sustainable, long-term success.

"We will continue to build on this foundation and capitalise on our numerous growth opportunities, while the macroeconomic and geopolitical backdrop remains uncertain.

"At the same time, we will further strengthen our operational execution and enhance effectiveness, leveraging our strong business platform to realise significant efficiency gains, while we continue our growth journey."