Dive Brief:
- Hugo Boss reported preliminary, non-audited fiscal 2023 sales of 4.2 billion euros, or approximately $4.6 billion at current exchange rates, representing a 15% increase over 3.7 billion euros in sales for 2022, according to a Monday earnings release.
- For Q4, preliminary numbers showed 1.2 million euros in sales, representing a 10% increase over the same period year over year, with sales in Asia/Pacific up 25% and sales in the Americas up 15%.
- For the full year, sales were up double digits in every region, with especially strong sales in the Americas and Asia/Pacific, which were up 21% and 23%, respectively. The company said in its release that strong Q4 numbers helped it reach full year 2023 sales and earnings targets, which the company revised twice during the year.
Dive Insight:
As the company continues its “Claim 5” rebranding strategy and pivots from a formal menswear line into a lifestyle brand, its digital push and expanded marketing initiatives seem to be working.
The company touted a “broadbased growth trajectory across both brands, all regions, and all channels”and said its current sales figures reflect “the ongoing strong brand momentum of BOSS and HUGO, fueled by the successful execution of several marketing, product, and distribution initiatives” related to its continuing efforts to refresh itself.
“We ended 2023 on a high note, making it a record year for HUGO BOSS,” CEO Daniel Grieder said in the release. “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.”
Digital sales were up 23% for both Q4 and fiscal 2023, continuing the company’s strong digital sales growth of 21% in Q3. Sales of the company’s Hugo line, which focuses on a younger customer, were up 20% year over year.
Pippa Stephens, senior apparel analyst at GlobalData, said in emailed comments that it was “encouraging that Hugo Boss did not experience a slowdown in the golden quarter, with Q4 sales growth in line with Q3 at 10.2%, despite the wider apparel market stalling.” She added that the figures highlight “its brands’ resilience amid the challenging economic climate and provides hope for FY2024.”
“The Americas also experienced impressive success given the general slowdown in consumer spending in the region,” said Stephens, who said the company’s more casual designs are “increasingly resonating with American consumers who are now wearing its products day-to-day rather than just for more formal occasions.”
The company said it expects operating profit to be up 22% for the full year, and said it plans to publish its final results for 2023 and its financial outlook for the fiscal year 2024 on March 7.
