Hugo Boss reports “record-breaking” fiscal year
Hugo Boss, which was dubbed the most sought-after brand for Black Friday, has raised its targets for the fiscal year 2023 after reporting a "very successful" fourth quarter.
Q4 of 2023
During the fourth quarter, currency-adjusted group sales grew 13% to £1.013 million (€1.177 million). All brands, regions and channels contributed to sales growth and EBIT increased by 17% to £104 million (€121 million) on a preliminary basis.
The business successfully continued its double-digit growth trajectory from previous quarters, with currency-adjusted revenue growth of 26%. This was thanks to double-digit digital growth as well as strong brick-and-mortar sales.
In brick-and-mortar wholesale, currency-adjusted revenues were up 5% year-on-year, with all three regions contributing to growth. Sales in the license business increased by 15%, led by double-digit growth in the fragrance business.
Fiscal year 2023
Currency-adjusted sales were up by 18% to a ‘record level’ of €4,197 million. EBIT increased by 22% to £353 million (€410 million) on a preliminary basis.
The company pointed to its successful execution of several marketing, product, and distribution initiatives as part of its Claim 5 strategy for its ongoing success. This was also fueled by the momentum of BOSS and HUGO.
From a geographical perspective, all regions contributed to revenue growth in the final quarter of 2023. Currency-adjusted revenues in EMEA came in 7% above the prior-year level against a solid comparison base.
Daniel Grieder, Chief Executive Officer of Hugo Boss, commented: "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. With our strong brand momentum and the ongoing successful execution we have laid a robust foundation for continuing our market-share-winning trajectory and making further progress in becoming one of the top 100 global brands."
By 2025, HUGO BOSS aims to generate revenues of £4.31 million (€5 billion) and an EBIT of at least £516 million (€600 million), representing an EBIT margin of at least 12%.
