Hugo Boss first quarter sales amounted to 968 million euros, representing an increase of 25 percent both currency-adjusted and in group currency. Revenues strongly exceeded pre-pandemic levels by 44 percent currency-adjusted.
In light of the strong financial performance in the first quarter, the company has raised its top- and bottom-line outlook for the current fiscal year with revenue increasing to a level of around 4 billion euros.
“We look back on an excellent start to the year, as we further accelerated brand momentum around the globe. We will make 2023 yet another record-breaking year for our company, as we aim to achieve our mid-term sales target of 4 billion euros already this year, thus significantly earlier than expected,” says Daniel Grieder, chief executive officer of Hugo Boss in a release.
Review of Hugo Boss Q1 results
Fueled by the ongoing strong brand momentum, the company recorded double-digit growth in currency-adjusted sales for Boss menswear of 23 percent, Boss womenswear, 28 percent, and Hugo, 31 percent during the first three months of the year.
In the first quarter, all regions recorded double-digit sales improvements. In EMEA, currency-adjusted revenues increased by 21 percent year over year, reflecting 28 percent growth in Germany and 17 percent in France as well as a particularly strong performance in growth markets such as the Middle East. With revenues up 38 percent currency-adjusted, momentum in the Americas further accelerated both year over year as well as versus pre-pandemic levels, including currency-adjusted sales increase of 31 percent in the U.S. market.
The group’s business in Asia/Pacific also recorded a 31 percent sales growth. This performance was driven by both sustained double-digit improvements in South East Asia & Pacific as well as a significant uptick in consumer sentiment in China following the market’s reopening in late 2022 after long-lasting Covid-19-related restrictions. As a result, sales in China were up 25 percent currency-adjusted.
The group’s digital business reported currency-adjusted sales increase of 22 percent, reflecting strong double-digit improvements across all digital touchpoints. Overall, currency-adjusted revenues in brick-and-mortar retail increased by 26 percent in the first quarter. On the other hand, Hugo Boss also recorded a strong uptick in brick-and-mortar wholesale with currency-adjusted sales up 26 percent.
Hugo Boss posts increase in Q1 profit, raises outlook
In the first quarter of 2023, Hugo Boss generated an operating profit (EBIT) of 65 million euros, representing a significant increase of 63 percent compared to the previous year. As a result, the group's EBIT margin increased by 160 basis points to a level of 6.7 percent.
While taking into account persistently high macroeconomic and geopolitical uncertainties, Hugo Boss now expects Group sales in 2023 to increase by around 10 percent to a level of around 4 billion euros compared to prior outlook of increase at a mid-single-digit percentage rate, with all regions set to contribute to growth.
At the same time, EBIT in 2023 is now expected to increase within a range of 10 percent to 20 percent to 370 million euros and 400 million euros versus prior estimate of increase within a range of 5 percent to 12 percent to an amount between 350 million euros and 375 million euros.