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Hugo Boss reports strong sales growth, expects full year profit to exceed forecast

By Prachi Singh

Jan 17, 2023


Image: Boss Flagship Oxford Street, London

On a preliminary basis, currency-adjusted revenues in the fourth quarter increased by 15 percent at Hugo Boss compared to the prior-year period, thus exceeding 2019 levels by 29 percent. In reporting currency, sales grew by 18 percent to 1,068 million euros.

The group anticipates that operating profit (EBIT) will increase by 47 percent to 335 million euros for full-year 2022, thereby exceeding current market expectations of increase between 35 percent and 45 percent to 310 million euros to 330 million euros.

“Thanks to an exceptionally strong final quarter, we even exceeded our own high expectations,” said Daniel Grieder, chief executive officer of Hugo Boss Ag, adding, “In particular our bold branding refresh impressively fueled the brand power of Boss and Hugo throughout the year.”

Review of Hugo Boss results

Quarterly sales thus exceeded the one billion euros mark for the first time in the history of Hugo Boss. This performance, the company said, reflects the ongoing successful execution of various key brand, product, and sales initiatives as part of the company’s “Claim 5” strategy, which drove robust consumer demand for Boss and Hugo also throughout the fourth quarter.

Across brands, the company added, Boss menswear, Boss womenswear as well as Hugo posted double-digit sales improvements in the fourth quarter.

Currency-adjusted sales for Boss menswear and Boss womenswear each grew by 14 percent in the fourth quarter. Also Hugo continued its double-digit growth trajectory, posting a sales increase of 18 percent compared to the prior-year period.

On a three-year-stack basis, currency-adjusted revenues for Boss menswear grew 27 percent, Boss womenswear, 24 percent, and Hugo, 46 percent.

Hugo Boss witnesses strong growth in EMEA and Americas

From a geographical perspective, the company added, sales growth in the fourth quarter remained particularly strong in EMEA and the Americas.

Currency-adjusted revenues in EMEA increased by 18 percent year over year. Development was spurred by robust revenue improvements across key markets including the UK, France, and Germany, as well as a particularly strong performance in growth markets such as the Middle East. Compared to 2019 levels, this translates into a further acceleration with revenues up 33 percent currency-adjusted.

In the Americas, currency-adjusted sales were up 17 percent, supported by double-digit growth in the important U.S. market. This corresponds to an increase of 44 percent on a three-year-stack basis.

The company further said that revenues in Asia/Pacific were down 3 percent currency-adjusted, as strong double-digit improvements in South East Asia & Pacific were more than offset by sales declines in mainland China. Compared to Q4 2019, currency-adjusted sales in Asia/Pacific increased by 4 percent.

From a channel perspective, currency-adjusted growth in the group’s digital business increased by 9 percent compared to the prior-year period, driven by double-digit sales increases in the group’s digital flagship Hugoboss.com as well as improvements in digital revenues generated with partners. Compared to 2019, total digital sales were up 92 percent currency-adjusted.

In brick-and-mortar retail, currency-adjusted revenues were up 12 percent compared to the prior year. On a three-year-stack basis, growth in brick-and-mortar retail amounted to 22 percent. In brick-and-mortar wholesale, currency-adjusted sales were up 29 percent year over year. Compared to pre-pandemic levels, this translates into strong double-digit growth of 21 percent.

Hugo Boss full year sales and profit exceed expectations

On a preliminary, non-audited basis, Hugo Boss achieved record sales of 3,651 million euros in fiscal year 2022, reflecting strong growth of 31 percent in reporting currency compared to the guidance range of increase between 25 percent and 30 percent to 3.5 billion euros to 3.6 billion euros. On a currency-adjusted basis, this translates into an increase of 27 percent.

The final quarter is expected to contribute an EBIT of 104 million euros, up 4 percent year over year. As a result, the EBIT margin for full year 2022 is expected to increase to 9.2 percent.

Hugo Boss will publish its final results for 2022 and its financial outlook for the fiscal year 2023 on March 9, 2023.