News Flash

Germany's Hugo Boss' sales surge 6% in Q1 FY24

02 May '24

2 min read

Germany's Hugo Boss' sales surge 6% in Q1 FY24

Pic: danflcreativo - stock.adobe.com

Insights

Hugo Boss reported Q1 FY24 sales of €1.014 billion (~$1.08 billion), marking a 6 per cent year-on-year increase.
Operating profit rose to €69 million, pushing the EBIT margin to 6.8 per cent.
The Americas led with an 11 per cent surge in sales, while digital revenues grew by 10 per cent. Overall, the company showcased strong growth across all channels.

German luxury fashion house Hugo Boss has reported sales of €1.014 billion (approximately $1.08 billion) in the first quarter of fiscal 2024 (Q1 FY24), a rise of 6 per cent on a currency-adjusted basis from €968 million in Q1 FY23. The growth was broad-based across both its brands—Boss Menswear and Boss Womenswear—as well as its newer Hugo line, with revenue increases noted in all regions and distribution channels. In group currency, revenue expanded by 5 per cent.

Operating profit (EBIT) for the quarter grew by 6 per cent to €69 million, up from €65 million in the comparable period last year. This improvement in profitability resulted in an EBIT margin expansion of 10 basis points, bringing it to 6.8 per cent up from 6.7 per cent in Q1 FY23, the company said in a press release.

Hugo Boss managed to maintain a robust growth in profit, signalling a healthy outlook for the brand. Additionally, the company reported a 2 per cent decline in inventories on a currency-adjusted basis, reflecting efficient inventory management.

The sales performance was particularly strong in the Americas where currency-adjusted revenues surged by 11 per cent, including a significant increase in the US market. In Europe, the Middle East and Africa (EMEA), sales grew by 5 per cent with notable contributions from Germany and emerging markets. The Asia-Pacific region saw a more modest growth of 4 per cent, with Southeast Asia and Pacific achieving double-digit growth, although sales in China lagged behind the previous year.

Hugo Boss's digital business continued its upward trajectory, with a 10 per cent increase in currency-adjusted sales, buoyed by gains at hugoboss.com and through digital sales with partners. The brick-and-mortar retail business also saw a 3 per cent growth in currency-adjusted sales, driven by store productivity enhancements and slight space expansion. The wholesale segment reported an 8 per cent growth in currency-adjusted sales.

“I am pleased that we delivered further sales and earnings improvements also in the first quarter of 2024,” said Daniel Grieder, chief executive officer of Hugo Boss. “In a volatile market environment, we remain focused on rigorously executing our ‘CLAIM 5’ strategy, capitalising on our numerous growth opportunities. By leveraging our strong business platform, we remain equally committed to realising further efficiencies. All of this will enable us to continue our profitable growth trajectory also in 2024.”

Fibre2Fashion News Desk (DP)

More Hugo Boss News... More Fashion News - Germany...