German fashion house Hugo Boss' sales climb 15% in FY23

The group also anticipates a significant increase in operating profit (EBIT) for the full year FY23, expecting a 22 per cent rise to €410 million, up from €335 million in FY22, Hugo Boss said in a press release.

In the fourth quarter of FY23 (Q4 FY23), Hugo Boss continued its strong performance with preliminary currency-adjusted revenues growing by 13 per cent compared to the same period last year. In reporting currency, Q4 sales rose by 10 per cent year-over-year (YoY) to €1,177 million, making it the most successful quarter in the company's history from a top-line perspective.

Boss menswear saw a 13 per cent increase in currency-adjusted sales YoY, while Boss womenswear and Hugo both reported a 14 per cent rise each.

Geographically, all regions contributed to the revenue growth in Q4 FY23. In Europe, Middle East, and Africa (EMEA), currency-adjusted revenues were up 7 per cent against a strong prior-year level, with significant sales increases in key markets like Germany and France and double-digit improvements in emerging markets. In the Americas, the company maintained its impressive momentum, with an 18 per cent increase in currency-adjusted sales, supported by continued strong growth in the US market. The Asia-Pacific region saw a remarkable 33 per cent increase in currency-adjusted revenues, driven by strong sales in China and Southeast Asia and Pacific.

The group's digital business maintained its double-digit growth trajectory, with a 26 per cent increase in currency-adjusted revenue. This performance was bolstered by sales increases across all digital touchpoints. In brick-and-mortar retail, the company also saw continued momentum, with a 12 per cent rise in currency-adjusted revenues, driven by store productivity improvements and additional selling space. The brick-and-mortar wholesale segment reported a 5 per cent increase in currency-adjusted revenues, with contributions from all regions. The license business experienced a 15 per cent increase in sales, led by significant growth in the fragrance sector.

The fourth quarter is expected to contribute an EBIT of €121 million, up 17 per cent YoY from €104 million in FY22.

“We ended 2023 on a high note, making it a record year for Hugo Boss,” said Daniel Grieder, chief executive officer of Hugo Boss. “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 of our ‘Claim 5’ strategy, 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.”

Fibre2Fashion News Desk (DP)