Germany's Hugo Boss' sales grow 43% to €2,786 million in 2021

In light of the strong top-line performance, the operating result (EBIT) also recorded a significant increase. Overall, EBIT amounted to €228 million in 2021, above the company’s increased guidance of between €175 million and €200 million – representing an EBIT margin of 8.2 per cent. This development was also supported by improvements in gross margin as well as operating leverage, the company said in a press release.

“At Hugo Boss, we are deeply concerned by the terrible situation in Ukraine. Our deepest empathy and thoughts are with the millions of people affected by the war and suffering from this humanitarian crisis,” said Daniel Grieder, chief executive officer of Hugo Boss. “To help the people in need, we support the German Red Cross and other institutions, standing in solidarity with each and every one calling for peace. We will continue to monitor the situation very closely and adapt our measures and financial support accordingly.”

As a result of the significant top- and bottom-line growth as well as noticeable improvements in trade net working capital, Hugo Boss generated the strongest free cash flow in its history. At €559 million, free cash flow in 2021 more than tripled compared to the prior year. As a consequence, the net financial position of Hugo Boss at the end of fiscal year 2021 totalled €167 million, representing the strongest net financial position of Hugo Boss to date.

“Right from its start, our growth strategy fuelled brand momentum around the globe. The highly successful branding refresh and ongoing investments will further drive relevance for Boss and Hugo in the current year. We have everything it takes to reach record sales in 2022. As a team, we will take a big step closer towards our goal of becoming one of the top 100 global brands,” Grieder explained.

In 2022, the company is confident of achieving strong top- and bottom-line improvements. At the same time, the company faces ongoing uncertainties with regard to the further development of the COVID-19 pandemic. In addition, it is difficult to assess the implications of a potential further escalation of the war in Ukraine on overall economic and sector growth.

In 2022, group sales are expected to increase between 10 and 15 per cent to a new record level of between €3.1 billion and €3.2 billion, with all regions and both brands expected to contribute to this development. In addition, Hugo Boss forecasts that it will increase EBIT in 2022 within a range of 10 to 25 per cent to an amount of between €250 million and €285 million. This development will be driven by the anticipated strong top-line improvements, the release added.

Fibre2Fashion News Desk (RR)