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German fashion house Hugo Boss' operating profit up 22% in FY23

08 Mar '24

2 min read

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Hugo Boss sees a 22 per cent EBIT increase to €410 million ($448 million) in FY23, driven by strong sales growth, surpassing €4 billion for the first time.
In FY23, sales increased 18 per cent to €4.197 billion.
The company expects sales growth of 3-6 per cent to €4.30-€4.45 billion in FY24, and EBIT is projected to rise 5-15 per cent to €430-€475 billion.

Hugo Boss, a leading German luxury fashion house, has reported an operating profit (EBIT) increase of 22 per cent in fiscal 2023 (FY23), reaching €410 million (approximately $448 million), up from €335 million in the previous fiscal year. This robust performance was primarily attributed to an impressive top-line growth, which successfully compensated for the additional investments made into the business. Consequently, the EBIT margin witnessed an expansion, increasing by 60 basis points to 9.8 per cent, compared to 9.2 per cent in fiscal 2022.

Group sales for fiscal 2023 surged by 18 per cent on a currency-adjusted basis, totalling a record €4.197 billion (approximately $4.58 billion), up from €3.651 billion in the preceding year. This milestone saw Hugo Boss's sales surpass the €4 billion mark for the first time in its history, achieving its mid-term sales target two years ahead of schedule. The growth was consistently strong across all brands, regions, and distribution channels, all contributing with double-digit increases, the company said in a press release.

Looking ahead to fiscal 2024, Hugo Boss projects sales to grow between 3 per cent and 6 per cent, potentially reaching between €4.30 billion to €4.45 billion. The company anticipates an EBIT increase of 5 per cent to 15 per cent, estimating it to be in the range of approximately €430 million to €475 million. Moreover, the EBIT margin is expected to further improve, reaching between 10 per cent and 10.7 per cent.

“2023 was another year of remarkable success for Hugo Boss,” said Daniel Grieder, chief executive officer of Hugo Boss. “The second full year of executing our ‘CLAIM 5’ growth strategy was characterised by strong achievements across all business areas and has accelerated the momentum of our two brands Boss and Hugo. These successes prove that with ‘CLAIM 5,’ we have the right strategy in place to unlock the full potential of our brands.”

Fibre2Fashion News Desk (DP)

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