Hugo Boss Q3 sales remain flat, maintains 2024 outlook

In the third quarter, Hugo Boss managed to increase currency-adjusted sales by 1 percent in a challenging market environment. In group currency, revenues amounted to 1,029 million euros in the quarter, slightly above the prior-year level.

Supported by the third-quarter performance, the company’s currency-adjusted sales rose 2 percent and in group currency, revenues grew by 1 percent to 3,058 million euros.

Commenting on the financial results, Daniel Grieder, chief executive officer of Hugo Boss said in a statement: In the third quarter, Hugo Boss achieved solid top-line improvements despite the ongoing weak consumer sentiment. This is a clear testament to the power of Boss and Hugo, which we have built in recent years by consistently executing our Claim 5 strategy.”

Boss and Hugo brands support positive Q3 trading results

In the third quarter, revenues for Boss menswear were up 1 percent above the prior-year level, while sales for Boss womenswear increased by 2 percent. At Hugo, currency-adjusted sales expanded by 2 percent in the quarter.

In EMEA, the company’s currency-adjusted sales were up 1 percent, reflecting revenue improvements in Germany, which largely compensated for softer sales trends in France and in the UK, while Hugo Boss continued to drive double-digit revenue improvements in emerging markets. In the Americas, currency-adjusted revenues expanded by 4 percent, reflecting further sales improvements in the important US market. While Latin America drove double-digit improvements, sales in Canada were on par with the prior year.

Currency-adjusted sales in the Asia/Pacific region decreased 7 percent, mainly reflecting revenue declines in China. At the same time, Southeast Asia & Pacific recorded further growth, supported by a double-digit uptick in Japan. Revenues in the licence business increased by 12 percent, reflecting growth across all licence categories, primarily in the fragrance business.

Brick-and-mortar retail business including freestanding stores, shop-in-shops, and outlets declined 3 percent compared to the prior year, while brick-and-mortar wholesale business recorded currency adjusted growth of 4 percent fueled by digital business revenue growth of 6 percent.

Hugo Boss records decline in Q3 earnings

At 60.2 percent, gross margin remained 50 basis points below the prior-year level, operating profit (EBIT) was limited to 7 percent, with EBIT amounting to 95 million euros in the third quarter and EBIT margin decreased by 80 basis points to 9.3 percent.

Net income amounted to 56 million euros, down 12 percent against the prior-year level. Net income attributable to shareholders decreased by 13 percent to 55 million euros, resulting in earnings per share of 0.79 euros, also down 13 percent year over year.

As of September 30, 2024, the company’s number of freestanding retail stores amounted to 490. In the first nine months of the year, a total of 25 Boss stores were newly opened across all three regions.

Five Hugo stores were added to the takeover in Poland, while 29 stores across EMEA and Asia/Pacific were closed in the first nine months of 2024.

Hugo Boss confirms 2024 outlook

Confirming its outlook for fiscal year 2024, Hugo Boss said it continues to expect sales to increase by between 1 percent and 4 percent in group currency to around 4.20 billion euros to 4.35 billion euros supported by wholesale order intakes as well as several brand, product, and sales initiatives planned for the remainder of the year.

The company continues to expect EBIT to develop within a range of 15 percent to 5 percent, amounting to around 350 million euros to 430 million euros taking into account the ongoing market uncertainty.

The company added that it expects net income to develop within a range of 15 percent to 5 percent in 2024.